Ford nyse F Stock Falls Amidst 224 Million Vehicle Recall

Ford (NYSE: F) Stock Falls Amidst 2.24 Million Vehicle Recall

Ford Motor Company (NYSE: F) shares fell almost 3% on Wednesday as the U.S. automaker recalled 2.24 million Ford Explorer SUVs due to trim-retention clip issues.

Ford Motor announced a global recall of 2.24 million older Explorer sport utility vehicles (SUVs) due to potential issues with trim retention clips not being properly engaged.

The recall, affecting 1.89 million SUVs in the United States, includes model years 2011 through 2019. The National Highway Traffic Safety Administration (NHTSA) revealed that the trim’s detachment is the concern prompting this recall.

Ford Response to A-Pillar Trim Issues

Ford stated that it had not received any reports of crashes or injuries associated with the recall.

Dealers will examine and replace the A-pillar trim if deemed necessary. The A-pillar, which supports the windshield, is the metal component of a car. Ford discontinued the use of this part in 2019.

Ford has projected that 5% of the vehicle population will be affected. Owners of these vehicles may observe gaps around a loosely fitted A-pillar trim or notice audible rattles and excessive wind noise emanating from the A-pillar area.

In 2018, the automaker was informed by NHTSA of an inquiry regarding the detachment of exterior A-pillar trim parts on 2012-2014 Explorer vehicles.

Ford stated that, upon investigation in 2018, it concluded that the issue did not present an unreasonable safety risk. In 2021, a review of the matter was reopened, and once more, Ford determined that no recall was deemed necessary.

NHTSA began a preliminary investigation in February 2023, and in August of the same year, Ford received an inquiry from Transport Canada regarding the same issue.

NHTSA alerted Ford that the detachment of trim while driving posed a safety risk to other vehicles on the road. The U.S. automaker acknowledged being aware of 14,337 warranty reports that alleged missing or detached exterior A-pillar trim parts.

Ford (NYSE: F) Stock Reaction

Ford stock fell -2.99% on Wednesday. The traders had exchanged hands with 52,056,636 (52.05 million) shares compared to the average daily trading volume of 55.33 million.