According to the National Highway Traffic Safety Administration (NHTSA), Ford (F) will recall more than 112,000 F-150 pickup trucks, citing issues with certain 2021-2023 F-150 vehicles. The recall centers around the rear axel hub on some vehicles with the Trailer Tow Max Duty package. Yahoo Finance’s Pras Subramanian joins the Live show to break down the latest development and how it will affect the company moving forward.
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Editor’s note: This article was written by Nicholas Jacobino
Video Transcript
SEANA SMITH: Ford recalling over 100,000 F-150 trucks in the US. The latest recall here for the company. What can you tell us about this? And how big of a challenge maybe this is for Ford at this point?
PRAS SUBRAMANIAN: Yeah, just saw this across here, 112,000, 113,000 F-150s with the– it’s a rear axle hub that might break. In some situations, it’s with cars that have the trailer tow max duty package. So what they’re saying is that this hub bolt might fatigue and break. And when the car is in park, it might roll away and you might lose– you might have loss of power and also just roll away for an accident.
Big picture is another black eye for Ford. The company’s been mired with so many reliability and recall issues. Last year, they had 870,000 pickups were recalled for an electronic parking brake issue. And then last year, Ford is the number one most recalled brand among all major automakers. So that’s just not good for Ford. And it just adds up to the cost of warranty and recalls and fixes.
SEANA SMITH: How big of a headwind has that been up until this point, just in terms of reliability and maybe people second guessing or thinking twice before they purchase a Ford vehicle?
PRAS SUBRAMANIAN: I mean, Jim Farley has brought this up, like almost on every call in the last year because of the fact that he said, we have to fix these reliability issues. This is a– sort of a remnant of years in the past. It’s a black eye for them. Because this is their number one– this is their icon, the F-150. It’s known as unreliable. I mean, that gives an opening for Silverado, for RAM, and things like that.
SEANA SMITH: Yeah, and Jim Farley has been very vocal about that here over the last couple of quarters, right? Pras, thanks so much.