Expanded Vehicle Recall Just Drove Ford (F) To This

Ford announced on Thursday that because of a $640 million charge for an expanded vehicle recall, the comapny has lowered its 2016 adjusted pre-tax profit forecast to $10.2 billion. This is from the at least $10.8 billion the car company had forecast back in July.

The recall, which was just expanded by 1.5 million vehicles to 2.4 million vehicles, is for side-door latches that may come unhinged while vehicles are in motion.

Since 2014, Ford has recalled nearly 4 million vehicles for door latch issues in six separate recalls. The expansion came at the request of the U.S. National Highway Traffic Safety Administration after the automaker in August issued a regional recall covering 830,000 vehicles.

2013-15 Ford C-MAX and Ford Escape, 2012-15 Ford Focus, 2015 Ford Mustang and Lincoln MKC and 2014-16 Ford Transit Connect, are included in the recall.

“With this expanded (recall), we now expect our 2016 total company adjusted pre-tax profit to be about $10.2 billion. We continue to expect our total company adjusted pre-tax profit in the third quarter of 2016 to be about 10 percent of our full-year 2016 results,” Ford said in a filing with the U.S. Securities and Exchange Commission.

Disclaimer: We have no position in Ford Motor Company (NYSE: F) and have not been compensated for this article.

Sofia Vida

Sofia has been writing for major news outlets for over 15 years. In her spare time she enjoys hiking, walking her dogs, and going to concerts.

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