Ford Recalls 850,000 Cars For Air Bag Flaw
Ford Motor Company put a price tag on its latest recall: $500 million.
The automaker broke the news Monday during a conference call with investors. It also said the amount will lower the company’s profit expectations for the year.
Ford announced Friday that it’s recalling 850,000 C-Max, Fusion, Escape and Lincoln MKZ models from 2013 and 2014 because a flaw in the air bag electronics might prevent them from deploying in a crash.
It said it hadn’t heard about any accidents or injuries related to the problem.
Ford’s recall comes as carmakers remain on heightened alert for defects in their vehicles. GM’s massive recall for a faulty ignition switch set this year’s record-setting recall pace.
“As a result of higher warranty costs, including recalls, in North America — mainly for prior year models — and lower industry volume and weakening conditions in South America and Russia, Ford now expects its 2014 pre-tax profits to be approximately $6 billion, excluding special items,” the company said.
The company had previously given a range of between $7 billion and $8 billion for the year.
Ford shares closed nearly 7.5% lower on the news.