Ford Motor Company (NYSE:F) announced that federal safety inspectors have added two more models of the automakers offerings for safety review. The concerns are that the door latches do not close properly and the additional models add to a growing list of cars in focus. The National Highway Traffic Safety Administration put the 2013 Ford Fusion and Lincoln MKZ midsize models on the probes list that already included the 2011-2013 Ford Fiesta compact cars. This brings the number of cars being reviewed to almost 486,000.
640 complaints have been filed by consumers to Ford and the NHTSA in reference to the faulty latches. They claim that the latches fail and the doors of the vehicles open while the cars are in motion creating a serious safety hazard. SO far only two injuries have been reported and Ford has received around 1,100 warranty claims. The investigation began looking into the Fiesta complaints in September of 2014 and only recently discovered the same latches in question are also used on the two models they just added to the list. The agency will complete its review and determine if a total recall is warranted to resolve the issues. Ford Motor Company (NYSE:F) states it is cooperating fully with the investigation.
February auto sales numbers were released and they were a disappointment. Seven of the top builders reported year-over-year sales growth but failed to meet expectations. US auto maker’s sales grew by 4.7% but they were expected to grow by over 7% by industry experts. Bad weather in the US from the strong winter was cited as the reason. Of the numbers released, the most disappointing for Ford were those showing GM had outsold the company’s F-Series pickups. The F-series showed a decline of 1% and because it has traditionally been Ford’s flagship and most consistent model this decline is substantial.
The bad results caused the stock to break off its recent uptrend but it held support at around $16 well. This might lead to some sideways trading as the stock looks to recover some of its previous momentum.