If there's one headwind that has plagued Ford Motor Co. (NYSE:F) this year, amidst the volatile tariff environment and President Donald Trump's policy changes, it has to be the several recalls it has issued this year, which have raised questions about the company's quality control issues.
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Ford issued recalls for millions of vehicles across several model lines, with the recalls affecting Lincoln vehicles too, which is the automaker's luxury-focused subsidiary.
To put it into perspective, data from the Department of Transportation (DOT) says that Ford has issued 134 recalls this year and there are still two months left for the year to end.
However, Ford CEO Jim Farley remains optimistic about the issues. Speaking to investors during the company's third-quarter earnings call earlier this week, the CEO acknowledged the issues with quality, calling it the company's "largest near-term opportunity."
Ford's Chief Operating Officer, Kumar Galhotra, also acknowledged the need to improve quality. "Improving quality is the single biggest driver to close our cost gap. Better quality lowers warranty expense and reduces recalls," he said during the earnings call, adding that Ford has improved its launch quality over the past two years, which would translate to fewer recalls.
Speaking of fewer recalls, Ford issued two more recalls this past week, detailing issues with certain models' automatic transmissions, which wouldn't shift into Park mode. The issue affects over 34,481 Ford and Lincoln vehicles manufactured from 2017 to 2021.
The other recall cites door trims on the B-pillar on both the driver and passenger side doors could detach while driving certain Ford Flex vehicles manufactured between 2017-2019. The recall affects over 64,938 units, the NHTSA acknowledgment issued by Ford for the recall said.
Meanwhile, Farley, in a recent interview, had said that the company was also dealing with technician shortages, adding that Ford's dealerships across the country had 6,000 empty bays due to a lack of skilled technicians, average waiting time too, was "two weeks," according to Farley.
Elsewhere, Ford is also grappling with aluminum supply woes as a major fire incident at its key supplier Novelis' Oswego, New York, factory has left the automaker scrambling for alternate supply chains.
It remains to be seen just how Ford's recall woes improve as the year draws to a close, but the company's F-150 truck has received the Japanese Prime Minister Sanae Takaichi's approval, as the government mulls importing a fleet of F-150 pickup trucks to Japan as a goodwill gesture to improve ties with the Trump administration.
Ford offers good Momentum and Value, while scoring satisfactorily on the Growth and Quality metrics. It also offers a favorable price trend in the Short, Medium and Long terms. For more such insights, sign up for Benzinga Edge Stock Rankings today!
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