Boston, MA 05/30/2014 (wallstreetpr) – Close on the heels of General Motors Company (NYSE:GM) announcing the recall of vehicles, Ford Motor Company (NYSE:F) has joined the biggest automaker in the U.S. to recall sports utility vehicles and sedans in North America mostly for the possible power steering loss. However, the company has not disclosed any potential charges involved that could potentially impact its financial results.
Recall of SUVs
Ford Motor Company (NYSE:F) has reportedly said that it is recalling approximately 1.186 million vehicles in the U.S. This is 2,200 short of the total vehicles recalled in the U.S. during the whole period of last year. The company’s recall includes 195,527 Explorer SUVs in North America between 2011 and 2013 model years and 915,216 Mercury Mariner and Escape from 2008 to 2011, as a result, of power steering issues.
Aside from these, the U.S. automaker will also recall close to 200K Taurus sedans in North America between 2010 and 2014 as a result of corrosion issue. Ford stated that it is also in the process of recalling approximately 82K sedans with floor mats, which may hinder with accelerator pedals operation. The company has put floor mats in Mercury Milan, Lincoln Zephyr, Ford Fusion, and MKZ sedans between 2006 and 2011.
The power steering loss could heighten the risk of a crash in case of vehicles travel at a lesser speed. There were 15 accidents as of mid-April, and this included two minor injuries, as a result, of power steering loss in Explorer SUVs. The accidents happened when the vehicles were moving at lower speeds.
Safety Issues
Following the recall of 15.8 million vehicles in the current year by the leading automaker in the U.S. General Motors Company (NYSE:GM), there seems to be heightened scrutiny on safety issues among the auto makers.
Kelley Blue Book analyst Karl Breuer has reportedly said that Ford Motor Company (NYSE:F) recalls may be due to the heightened sense of concerns among automakers. He also said that there were a number of recalls after February following the recall of General Motors Company’s recall of vehicles on ignition switch issue.
