Ford will record $295 million hit from two NA recalls

Ford Motor Co., the second largest US automaker, on Wednesday announced two new recalls affecting 440,000 vehicles and expects to spend about $295 million to fix the issues. A lack of coolant circulation can cause these vehicles to overheat and explode.

Ford Motor Co. said it will take a $295 million hit to its first-quarter earnings from two recalls in North America, one involving engines that could catch fire and the other involving a persistent door latch problem. Customers can drive their vehicles, but should go to a dealer if there are issues with its coolant.

There are 210,619 vehicles affected in this expanded recall in North America, including 191,432 in the United States and federalized territories, 10,996 in Canada and 8,191 in Mexico.

The automaker said it is aware of 29 reports of fire associated with this issue in the US and Canada.

The vehicles affected include the 2014 Ford Escape, 2014-15 Ford Fiesta ST, 2013-14 Ford Fusion and 2013-15 Ford Transit Connect vehicles. This may reduce the vehicle's structural integrity in a side-impact collision, Ford said. To fix the issue, dealerships will add a coolant level sensor.

The company said it will mail customers instructions from the owner's manual on how to check and refill coolant.

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Since the 2015 recall, there are almost 757,000 cars that are being brought back, including the newly recalled cars.

The company is also expanding a previous recall on faulty door latches to include an additional 211,000 cars.

Ford is recalling the current-generation Escape for engine fires, according to the company and the National Highway Traffic Safety Administration (NHTSA). That recall included the 2012-2015 Ford Focus and the 2013-2015 Ford Escape and C-Max.

In October, NHTSA opened a preliminary investigation into 440,000 Ford 2011-2013 Edge SUVs over door latch warning light issues.

In the affected vehicles, the pawl spring tab in the side door latch could break.

A year ago door latch recalls cost the company $640 million. There have been no resulting accidents or injuries, Ford said.

  • Delia Davidson