You are here: Home » Automobile » News
Business Standard

Ford to recall 3 million vehicles for air bags at $610 million cost

The recall includes 2.7 million US vehicles

Topics
Ford | Auto sector | Carmakers

David Shepardson | Reuters  |  WASHINGTON 

Ford Motor
Ford Motor | File

Motor Co said on Thursday it will recall 3 million vehicles for air bag inflators that could rupture, at a cost of $610 million.

The National Highway Traffic Safety Administration on Tuesday ordered to issue the recall for driver-side air bag inflators, rejecting the automaker's 2017 petition to avoid it.

The defect, which in rare instances leads to air bag inflators rupturing and sending potentially deadly metal fragments flying, prompted the largest automotive recall in U.S. history of more than 67 million inflators. Worldwide, about 100 million inflators installed by 19 major automakers have been recalled.

The recall includes 2.7 million U.S. vehicles. will include the cost in fourth-quarter results.

The vehicles were previously recalled for passenger-side inflators. "We believe our extensive data demonstrated that a safety recall was not warranted for the driver-side airbag. However, we respect NHTSA's decision and will issue a recall," Ford said.

NHTSA also required Mazda Motor Corp to recall 5,800 air bag inflators in 2007-2009 B-Series vehicles.

Takata inflators have resulted in at least 400 injuries and 27 deaths worldwide - including 18 U.S. fatalities with two in previously recalled 2006 Ford Ranger trucks.

The Ford vehicles being recalled include various 2006-2012 model-year Ranger, Fusion, Edge, Lincoln Zephyr/MKZ, Mercury Milan and Lincoln MKX vehicles.

In November, NHTSA rejected a petition filed by General Motors Co to avoid recalling 5.9 million U.S. vehicles with Takata air bags. GM said the callback covered 7 million vehicles worldwide and would cost $1.2 billion.

Ford separately disclosed on Thursday it expects to record a pretax remeasurement loss of $1.5 billion in the fourth quarter related to pension and other post-employment benefits plans, driven by lower discount rates.

Ford said the remeasurement loss is expected to reduce net income by about $1.2 billion, but did not change expectations for 2021 pension contributions.

 

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, January 22 2021. 14:40 IST