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Ford issues safety recall on Explorer SUVs, citing potential steering problem

Key Points
  • Ford is issuing a safety recall on 1.2 million Explorer SUVs, primarily in the United States, citing a potentially dangerous suspension defect.
  • The defect could cause a component in the suspension on select vehicles sold in the 2011 to 2017 model years to break, compromising drivers' control of steering.
  • Ford estimates repairing the suspension in the vehicles will cost $180 million.
2014 Ford Explorer
Source: Ford Motor Co.

Ford is issuing a safety recall on 1.2 million Explorer SUVs, primarily in the United States, citing a potentially dangerous suspension defect, the company said Wednesday.

The defect could cause a component in the suspension on select vehicles sold in the 2011 to 2017 model years to break, compromising drivers' control of steering. Ford said in its statement that a customer reported an accident with a curb when the component broke but that the company was not aware of any injuries attributable to the problem.

Ford estimates repairing the suspension issue in the vehicles will cost $180 million, and it will be incurred in the second quarter, according to a filing with the Securities and Exchange Commission. The company's annual revenue in 2018 was $160.3 billion.

The company also issued recalls on F-150 trucks and Econoline vans, as well as Taurus and Flex sedans and Lincoln MKS and MKT sedans in Canada, citing suspension issues, transmission calibration problems and faulty welding, which could lead to a sudden loss of engine power in some vehicles. These recalls affect about 139,000 vehicles total.

Ford did not specify how much these repairs will cost the company. Affected vehicles came from Ford plants throughout the U.S., including Ford's Chicago, Dearborn, Kansas City and Oakville plants.

Ford shares were trading down less than 1% on the news.

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US Markets

These companies have the most to lose from US tariffs on Mexico

Key Points
  • GM, Ford, American Axel, Autoliv and Lear are the stocks most at risk from Trump's planned tariffs on Mexico, according to RBC Capital Markets.
  • Mexico exports more than $100 billion worth of autos and auto parts imported into the U.S.
  • Within the consumer staples sector, Spectrum Brands and Newell Brands have the most exposure to Mexico.
  • RBC's building products sector, which includes companies like Whirlpool and Fortune Brands, would also be hit.