2023-07-31 07:55:15 ET
Ford Motor ( NYSE: F ) recalled more than 870K newer F-150 pickup trucks in the U.S. on concerns that the electric parking brakes could turn on unexpectedly.
The recall covers certain pickups from the 2021 through 2023 model years with single exhaust systems.
The automaker stated in documents posted by NHTSA regulators Friday that a rear wiring bundle can come in contact with the rear axle housing. That can chafe the wiring and cause a short circuit, which can turn on the parking brake without action from the driver, increasing the risk of a crash. Drivers may see a parking brake warning light and a warning message on the dashboard.
The recall notice indicated that Ford ( F ) has had 918 warranty claims and three field reports of wire chafing in North America. Of those, 299 indicated unexpected parking brake activation, and 19 of these happened while the trucks were being driven. Ford ( F ) said it does not know of any crashes or injuries caused by the problem.
On Wall Street, Ford ( F ) was cut to a Hold rating at Jefferies. Analyst Philippe Hourchois said that however sensible it is to slow down the pace of loss-making Gen 1 sales to preserve returns, the change in Model e guidance is a setback. "We appreciate efforts in disclosure and accountability and note no apparent change to mid-term strategy, with Gen 2 focused on software centric and concentrated line-up making sense to us, but effective in '26 leaving a less differentiated investment case in the interim years," he warned. Even with improved full-year guidance, Ford's ( F ) balance sheet was noted to still screen weaker than peers.
Shares of Ford ( F ) fell 1.56% in premarket trading on Monday.
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Ford trades lower after large F-150 recall, Jefferies downgrade