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A visitor walks past a Ford Escape Titanium at an auto show last April.
Greg Baker | AFP | Getty Images
DETROIT – Ford Motor will recall 3 million older vehicles over potential issues with their airbag inflators, which will cost the automaker around $ 610 million.
The company confirmed the cost in a filing Thursday with the Securities and Exchange Commission after the closing bell. Ford stock fell in the red during after-hours trading, down around 2%. Shares ended Thursday up 6.2% to $ 11.53 per share – the highest close since June 2018. Ford’s market cap is over $ 45 billion.
On the record, Ford said the expense would be treated as a special item as part of its February 4 fourth quarter results. That means it won’t affect Ford’s adjusted earnings before interest and taxes or adjusted earnings per share – things closely watched by Wall Street.
The National Highway Traffic Safety Administration on Tuesday rejected a 2017 petition from Ford seeking to avoid recalling vehicles with potentially dangerous airbags, produced by automotive supplier Takata.
Affected vehicles range from model years 2006 to 2012. They include Ford Ranger (2007-2011), Fusion (2006-2012), Edge (2007-2010), Lincoln MKZ / Zephyr (2006-2012), MKX (2007-2010) )) and Mercury Milan vehicles (2006-2011).
The recall will affect about 2.7 million vehicles in the United States and about 300,000 in Canada and other countries, the company said.
Takata airbag inflators have been a recurring problem for car manufacturers for years. The fault can cause the airbag inflators to rupture, sending potentially fatal metal fragments into the vehicle. The problem is linked to the deaths of at least 27 people around the world and 18 in the United States, according to Reuters. Over 67 Million Inflator Issue Is Biggest Automotive Recall In U.S. History
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