Ford to recall 830,000 vehicles due to door latch issue

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Sharecast News | 04 Aug, 2016

Updated : 14:47

US automaker Ford is set to take a hit of $270m as it has recalled 830,000 vehicles due to a design fault.

The issue surrounds the door latch of various cars, including Lincoln, Mustang and Focus models. Many of the vehicles have a problem with the spring tab which prevents the door from latching, and in some cases could unlatch while driving.

The approximately 828,053 vehicles affected include 766,682 in the United States and 61,371 in Mexico.

In a regulatory filing, Ford said that the issue would cost the Michigan-based company as much as $270m, but added that it is "consistent with our expectation for total company third quarter 2016 adjusted pre-tax profit to be about 10 per cent of our full-year 2016 results".

Shares were largely unchanged in pre-market trading, but down 4.2% for the week after disappointing sales results for July were released by Ford and other car manufacturers.


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