Ford to spend $610 million to recall 3 million vehicles due to potential air bag issues

A customer walks previous a Ford Escape Titanium at an auto present final April.

Greg Baker | AFP | Getty Images

DETROIT – Ford Motor will recall 3 million older vehicles due to potential issues with their airbag inflators, costing the automaker an estimated $610 million.

The firm confirmed the fee in a submitting Thursday with the Securities and Exchange Commission after the closing bell. Ford inventory fell into the pink throughout after-hours buying and selling, down about 2%. The shares ended Thursday up 6.2% at $11.53 a share — the inventory’s highest shut since June 2018. Ford’s market cap is greater than $45 billion.

In the submitting, Ford stated the expense can be handled as a particular merchandise as a part of its fourth-quarter earnings on Feb. 4. That means it is not going to influence Ford’s adjusted earnings earlier than curiosity and taxes or adjusted earnings per share – carefully watched gadgets by Wall Street.

The National Highway Traffic Safety Administration on Tuesday denied a 2017 petition by Ford in search of to keep away from recalling the vehicles with the possibly harmful airbags, which have been produced by auto provider Takata.

The impacted vehicles vary from mannequin years 2006 by way of 2012. They embrace Ford Ranger (2007-2011), Fusion (2006-2012), Edge (2007-2010), Lincoln MKZ/Zephyr (2006-2012), MKX (2007-2010), and Mercury Milan (2006-2011) vehicles.

The recall will have an effect on roughly 2.7 million vehicles in U.S. and roughly 300,000 in Canada and different areas, the corporate stated.

Takata airbag inflators have been an ongoing problem for automakers for years. The defect may cause air bag inflators to rupture, sending doubtlessly lethal steel fragments flying within the automobile. The downside has been linked to the deaths of at the very least 27 individuals worldwide and 18 within the U.S., in accordance to Reuters. The downside involving the greater than 67 million inflators is the most important automotive recall in U.S. historical past

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