Ford recalls vehicles due to fire risk
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Although the remedy for the recall condition is currently under development, Ford estimates that $570 million will be spent fixing the subject vehicles
What implications does this carry for Ford and investors? The consequences are serious. Quality issues could damage consumer trust and increase warranty and recall costs. Ford stock remains down approximately 15% over the past 12 months,
The number also breaks a record. The last big automaker to hold the record for the most recalls in a calendar year was General Motors, which had 77 recalls in 2014. Ford has exceeded that number in half the time.