Ford Motor Company (F - Free Report) announced two recalls in North America to fix issues that can affect the control of transmissions on its 2017 and 2018 models. The first recall comprises of approximately 347,425 units of F-150, F-650 and F-750 trucks as well as Expeditions of the 2018 model year while the second recall includes 161 units of F-150, Expeditions, Lincoln Navigators and Ford Mustangs.
The first recall majorly affects pickup trucks and sport utility vehicles (SUV), equipped with six- and 10-speed automatic transmissions, as those units have a potential unseated transmission gear shift cable clip that might leave the transmission in a different gear state from the position selected by the driver. This defect will make the vehicle move, even when it is parked, with no warning messages if the driver’s door is open.
Moreover, this recall involves 292,909 units in federalized territories and the United States, 51,742 in Canada and 2,774 in Mexico.
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Further, the second recall includes F-150s, Expeditions, Lincoln Navigators and Ford Mustangs with 10R80 transmissions as the vehicles have missing roll pins. With repeated use, this may make the vehicles move, even in parking mode, without any warning message or door chime. Out of the total 161 vehicles, 142 are from the United States and federalized territories, one is from Mexico and 18 are from Canada.
Dealers will inspect the affected vehicles and if required, repairs will be done free of cost.
Earlier in March, Ford reported the recall of around 1.38 million vehicles in North America. The affected models included 2014-2018 Ford Fusion vehicles and 2014-2018 Lincoln MKZ cars which were built at plants in Michigan and Mexico. The company announced that the faulty steering wheel bolts will be replaced with longer bolts by the dealers.
In the last six months, shares of Ford outperformed the industry it belongs to. During the period, its stock declined 9.8% in comparison with the industry’s loss of 13.3%.
Zacks Rank & Key Picks
Ford carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Honda Motor Co., Ltd. (HMC - Free Report) , Toyota Motor Corp. (TM - Free Report) and General Motor Co. (GM - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Honda has expected long-term growth rate of 5.2%. Over a year, shares of the company rose 19.5%.
Toyota has expected long-term growth rate of 6.1%. Over a year, shares of the company gained 18.3%.
General Motor has expected long-term growth rate of 8.4%. Over a year, shares of the company rose 10.9%.
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