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Ford Recalls Lincoln MKZ

Zacks Equity Research

Ford Motor Co. (F) announced the global recall of 7,329 Lincoln MKZ hybrid vehicles of the model years 2013 and 2014. The recall is being made to reprogram the powertrain control module. The existing module is unable to meet the U.S. regulatory requirement, which mandates that the brake should be depressed before the car can be shifted out of parking.

Ford is recalling about 7,100 Lincoln MKZ vehicles in the U.S. and around 170 in Canada. The recall is being undertaken as Ford found that Lincoln MKZ had manufacturing defect in the transmission range sensors. This defect results in incorrect assumption by the powertrain control that the vehicle is in neutral, which may result in shifting of the transmission out of parking without the brake pedal being pressed; thus leading to unintended vehicle movement.

The recalled Lincoln MKZ vehicles were manufactured in the Hermosillo Assembly Plant during Apr 26, 2012 to Sep 24, 2013. However, no casualties have been reported due to this problem.

Last week, Ford announced two recalls of its popular sports utility vehicle (:SUV) Escape of the model year 2013. This was the automaker’s seventh recall of Escape since the vehicle was redesigned and marketed in the spring of 2012.

The first recall covers 161,334 Escape SUVs globally. The company recalled the vehicles as the engine cylinder head may crack due to overheating and thereby result in leakage of oil. This may eventually lead to fire.

The next recall covers 11,821 Escape vehicles, which are included in the above-mentioned recall as well. Ford announced the second recall due to the improper installation of the engine compartment fuel line during a prior recall. This also may lead to oil leakage.

Not only Ford, other automakers are also recalling vehicles for several reasons. Recently, Volkswagen AG (VLKAY) recalled 2.64 million vehicles across the globe to fix some drive system and electronic problems.

Volkswagen was followed by Toyota Motor Corp. (TM), which recalled 33,000 cars, pickup trucks and commercial vehicles globally to fix a problem related to the engine. Further, General Motors Company (GM) recalled 60,000 Chevy Malibu midsize cars from the U.S., Mexico and Canada. The automaker is recalling 44,000 Malibu to fix a problem related to window defrosters and another 15,000 Chevy Malibu are being recalled to fix the power seat wiring.

Ford currently carries a Zacks Rank #1 (Strong Buy)

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