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Ford Celebrates April 2015 Despite Recalls

May 04, 2015 | About:

On April 29, 2015, leading American car manufacturer Ford Motor Co. (NYSE:F) announced an extensive safety recall of certain models of Lincoln MKZ, Fusion and Fiesta models to address four separate glitches that may need rectification comprising of potentially corrosive motor attachment bolts hindering smooth steering and a possible fault in the door latching mechanism that comes loose. This is an extension to last week recall of about 390,000 of these three Ford vehicles from North America and Canada, taking the total count up to nearly 546,000 affected vehicles.

Safety first

On May 1, 2015, by mid-afternoon trading, Ford Motors, the number 2 car manufacturer of US behind only to General motors (NYSE:GM) and ahead of Chrysler (NYSE:FCAU) was down by 0.28% to $15.76 a share but for the top car maker, safety seems to be supreme with this extended recall being the fifth such incident addressing door latch concerns since 2014 and targeting almost 1.5 million vehicles of various makes.

Ford representatives said that ‘The driver's door can potentially unlatch while the car is in motion, increasing the risk of injury’. The drastic recall was undertaken in response to reported incidents of unlatched doors bouncing and hitting the driver and an adjacent car. The recall is being undertaken for 2011-14 Ford fiesta models, Ford Fusions manufactured between 2013 -2015 and 2014 model Lincoln MKZ sedans for faulty pawl spring tab in the door latches, making them susceptible to breaking loose and pose hazardous on road. Also, the 2015 Ford Edge crossover vehicles displaying chances of compromised steering systems due to liable to corrode bolts that default to manual mode, expressly during slow driving are also in the targeted models. Ford officially reiterated that total loss of control was not an issue and that the recall was a pre-meditated step seemingly directed by the National Highway Traffic Safety Administration and in complete conformance with the total safety policy of the company to reduce any kind of risk of a potential crash. Mark Fields, the CEO of Ford, met the National Highway Traffic Safety Administration (NHTSA) Administrator Mark Rosekind on his tour of Detroit automakers to cultivate associations as well as gauge their safety practices.

Recall affairs

Unlike the recall nightmare of General Motors last year, regarding the malfunctioning trigger ignition-switches that even caused fatal crashes, no known cases of accidents or injuries have yet come to light due to these reported malfunctions. During the safety recall, authorized Ford dealers will carry out free replacements of the bolt and steering wheels in the respective car models. In non-corrosion states, an extended warranty is being offered to the relevant vehicle owners.

Best April yet

As per analysts, April 2015 was the best for the auto giant since 2006 with a very positive 5% rise in sales this month. The company happily declared keen demand for its new models specifically the F-Series SUVs, Mustangs, vans and Edge models boosted April sales with purchase of 222,498 automobiles. Overall, analysts consider Ford Motor Co as a good buy with a growing gross profit margin 18.58% and a healthy net operating cash flow of $2,413.00 million which increased by 8.69% from the same quarter last year.

With the upcoming launch of newer models with superior safety features, the future is bright for Ford, the “Most Innovative Volume Brand 2015” at the tenth annual Automotive Innovations Awards.

About the author:

Business Reports
We are a group of analysts exploring and analyzing different domains of business and writing reviews based on information available in public domain web portals. We do not hold any stock or investment position in any of the companies that we write for.

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