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30 March 2017, 01:22 | Dawn Berry
Ford will record $295 million hit from two NA recalls
The move will affect Ford's bottom line in the first quarter of the year, cutting pretax earnings by $295 million.
About 208,584 of the affected vehicles are in the US and federalized territories, 21,854 are in Canada and 318 are in Mexico. Ford stated a lack of coolant circulation could cause the engine to overheat and possibly ignite.
Ford's second recall expands on an earlier recall involving door latches. The company said it is aware of at least 29 reported engine fires in the US and Canada.
Ford is recalling 230,000 Escape SUVs, Fiesta ST subcompacts, Fusion midsize cars and Transit Connect vans with 1.6-Liter turbocharged engines from 2013 through 2015. Instead, Ford will mail instructions to owners reminding them to check their coolant levels, refill the coolant, and schedule service if the coolant "frequently" needs to be topped off. Continued operation of a vehicle at these speeds could result in a resonance frequency that may fracture transmission and/or driveline components, Ford said.
Ford now doesn't have service kits available and told customers to continue to drive their vehicles. The expansion brings the total from the 2015 recall to almost 757,000. It's adding another 211,000 vehicles to the mix, including the 2014 Fiesta, 2013-2014 Fusion and the 2013-2014 Lincoln MKZ.
Ford is recalling the current-generation Escape for engine fires, according to the company and the National Highway Traffic Safety Administration (NHTSA).
The company recalled more than 2.3 million vehicles last fall because their door latches weren't working properly.
Ford said there have been no injuries so far attributed to the bad latches, which can sometimes prevent the door from fully closing or cause it to open suddenly while the auto is in motion. In September, Ford said it was taking a $640 million charge for its expanded side-door latch recalls.
The cost of the latest recall is included in Ford's most recent earnings guidance, the company said in a filing with the U.S. Securities and Exchange Commission.
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