Business & Investment

Reuters recalls 3 million vehicles for airbags at a cost of $ 610 million

© Reuters.File photo: Ford Motor Company logo drawn in 2019

David Shepherdson

Washington (Reuters)-Ford Motor Company (NYSE :) Co announced Thursday that it will recall 3 million vehicles for airbag inflators that could explode at a cost of $ 610 million.

On Tuesday, the National Road Safety Authority ordered Ford to issue a recall of driver-side airbag inflators, rejecting the car manufacturer’s 2017 petition to avoid it.

In rare cases, the rupture of an airbag inflator and the flying of potentially deadly pieces of metal prompted the recall of over 67 million inflators, the largest car in US history. Around the world, about 100 million inflators installed by 19 major car manufacturers have been recalled.

The recall includes 2.7 million US vehicles. Ford will include costs in its fourth quarter results.

The vehicle was previously recalled for the passenger seat inflator. “We believe our extensive data shows that safety recalls for driver side airbags are not guaranteed, but we will respect NHTSA’s decision and issue recalls,” Ford said. Said.

NHTSA also requested Mazda Motor (OTC :) Corp to retrieve 5,800 airbag inflators on its 2007-2009 B-series vehicles.

Takata’s inflator has caused at least 400 injuries and 27 deaths worldwide. This includes 18 Americans who died in a previously recalled 2006 Ford Ranger truck.

Ford vehicles to be recalled include the 2006-2012 model Ranger, Fusion, Edge, Lincoln Zephyr / MKZ, Mercury Milan and Lincoln MKX.

In November, NHTSA rejected a petition submitted by General Motors (NYSE :) to avoid recalling 5.9 million US vehicles with Takata airbags. GM said the callback will cover 7 million vehicles worldwide and will cost $ 1.2 billion.

Ford disclosed individually on Thursday and expects to record a $ 1.5 billion pre-tax remeasurement loss in the fourth quarter related to pensions and other retirement benefits plans due to lower discount rates.

Ford said its remeasurement losses are expected to reduce net income by about $ 1.2 billion, but expectations for 2021 pension contributions have remained unchanged.

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Reuters recalls 3 million vehicles for airbags at a cost of $ 610 million

https://www.investing.com/news/stock-market-news/ford-to-recall-3-million-vehicles-for-air-bags-that-could-rupture-2395598 Reuters recalls 3 million vehicles for airbags at a cost of $ 610 million

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