Another Ford Recall Includes 850,000 Cars

By Douglas A. McIntyre Published Jul 11, 9:42AM EDT

Key Points

Ford Has Had Huge Recall Numbers This Year
Recalls Have Hurt Earnings

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Another Ford Recall Includes 850,000 Cars — © 2024 Getty Images / Getty Images News via Getty Images

Ford (NYSE: F | F Price Prediction) has made a name for itself as the recall leader of the car industry. Its warranty financial troubles also trigger huge hits to its earnings. A new recall includes over 850,000 vehicles which have a risk of a fuel pump failure.

According to the by the National Highway Traffic Safety Administration, “Ford Motor Company (Ford) is recalling certain 2021-2023 Bronco, Explorer, Lincoln Aviator, F-250 SD, F-350 SD, F-450 SD, F-550 SD, 2021-2022 Lincoln Navigator, Mustang, F-150, and 2022 Expedition vehicles. The low-pressure fuel pump may fail, which can result in an engine stall while driving.” Ford has not come up with a way to fix the problem. The “while driving” part should give owners concern. The vehicles involved will be fixed for free,

Carscoops writes that Ford recalled four million vehicles before the end of June. The recall total was 81. The average vehicles per recall hit 50,341. This is a recall every 2.12 days.

The cost of warranty work cut Ford’s adjusted EBIT in 2024. In the fourth quarter, recall effects on earning were about $500 million. That was down slightly from the third quarter. Ford also warned about the negative effects of warranty costs on October 28 of last year. CEO Jim Farley commented “Cost, especially warranty, has held back our earnings power, but as we bend that curve, there is significant financial upside for investors.” This is not the first time he has made comments that are similar.

Ford can ill afford this major string of self-inflected injuries. Farley recently commented Ford was well behind the curve in introducing world class EVs. He expressed anxiety about the lead Chinese EV makers have in this sector. Ford has lost tens of billions of dollars on EVs. The No.2 US car company expects it will lose another $5 billion to $5.4 billion on EVs this year.

Ford shareholders have paid for its mistakes. The stock is down 10% in the last year, while the S&P 500 is 11% higher.

So far in 2025, Ford’s recalls “beggars the imagination.”

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.