In A Major Recall, Ford Motor Company (NYSE:F) Recalls 850,000 Vehicles In North America Over A Potential Issue

Albany, New York (09/26/2014) – Ford Motor Company (NYSE:F) on September 26, 2014, issued a recall for nearly 850,000 vehicles for a potential issue related to the restraints control module of the vehicles. The recall is specific to North America and relates to the 2013-2014 models of the Ford C-MAX compact, Fusion, Escape SUV and Lincoln MKZ.

The Ford Escape has now become one of the most recalled of Ford’s vehicles, and this latest recall makes it the 12th recall for various versions of the 2013 model for Escape.

As per an announcement by the Ford Motor Company (NYSE:F), the above mentioned issue in the restraints control module could lead to a possible short circuit in the vehicles which could eventually result in non-functioning of functions related to the module like side curtains, airbags, etc. Thus resulting in more injury in case of a crash as functions like airbags may fail operate.

Moreover, the potential issue could also disturb the functioning of other systems like stability control, which depend on the restraints control module for their data. The problem may lead to illumination of warning indicator lamps of the affected functions.

Out of the nearly 850,000 vehicles recalled, 750,000 are from the U.S. and the rest are from Mexico and Canada. Ford Motor Company (NYSE:F) is not yet aware of any accidents that are related to this potential issue and has assured that customers will get the module replaced at no extra cost.

The recall is a major one for this week after Chrysler recalled nearly 350,000 vehicles on Thursday, September 25th, due to fault with the ignition switch which may lead to the engine shutting down. The problem could also result in loss of power supply to wipers, air bags, steering and other necessary functions, which could result in accidents.

So far, auto companies in the U.S. have recalled nearly 40 million vehicles this year, and most of these recalled vehicles are from General Motors Company (NYSE:GM).

About the Author

Viraj Shah has done M.Com (Finance) and currently pursuing CFP. He is a technical analyst who tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in market.

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