Ford Recalls about 260,000 Vehicles

June 13, 2005

US Federal regulators announced Monday June 13, 2005 that Ford was recalling nearly 260,000 vehicles due to significant safety defects. According to Ford representatives, 18,000 additional Ford vehicles are being recalled in Canada and Mexico. Most of the recalled vehicles are large pick-up trucks that have potential safety defects, including the sudden stalling of diesel engines. According to the National Highway Traffic Safety Administration (NHTSA) this stalling problem affects Ford 2004 and 2005 models of: Ford F-series (F-250, 350, 450, and 550) Super Duty pickups, Ford Excursion full-size SUV, and the E350 and E450 Ford vans.

The NHTSA reports that more than 180,000 of these recalled vehicles are equipped with 6.0 liter diesel engines that have potentially faulty fuel injection control modules. A faulty ignition module can cause a vehicle to stall at low or highway speeds, thereby posing a significant safety threat. When a vehicle stalls at any speed, it can result in loss of vehicle control and collisions with other objects or vehicles. The NHTSA has received reports of two injuries linked to the Ford vehicles equipped with faulty fuel injection control modules.

Ford is also investigating 2003 model-year F-series Super Duty Pickups for other engine performance problems. The NHTSA also announced Monday that Ford was recalling nearly 80,000 Super Duty Pick-ups from the 2005 model year because their fuel lines may separate from the main fuel bundle. When fuel line separation occurs, it can cause the engine to stall or leak fluids. A fuel leak has the potential to cause a catastrophic fuel fed fire in an accident. No accidents from this Ford fuel line defect have been reported to the NHTSA so far.

Ford is concerned about the possibility of significantly lower earnings in the 2005 period. Ford, the second largest auto manufacturer in the United States, has been losing sales and market share to Japanese competitors for the last few years. Ford worries that their core automotive operations may not be profitable in 2005. This risk may only be aggravated by reports of major vehicle recalls, like the one announced June 13, 2005.

For more information on crashworthiness and Ford recalls, contact us to confer with an attorney.

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