Expanded Vehicle Recall Just Drove Ford (F) To This

Posted on

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.