Ford Door-Latch Issues Expand to Trucks -- Update

By Mike Colias Features Dow Jones Newswires

Ford Motor Co. is recalling 1.3 million late-model pickup trucks in North America to fix faulty door latches, a move expected to shave $267 million from fourth-quarter profit.

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The No. 2 U.S. auto maker said it isn't aware of injuries or accidents related to the defective latches, which can cause the door to get stuck or appear closed without being fully latched, risking it swinging open while the truck is moving. The recall covers F-150 trucks from model years 2015 to 2017, as well as 2017 Super Duty trucks.

Dealers will install water shields over the latches to fix the problem, Ford said. Ford's F series pickup-truck line is the company's highest-volume product and its main profit driver.

In a regulatory filing, Ford said the $267 million expense for the fix will be reflected in fourth-quarter earnings. The company also reiterated full-year pretax profit guidance of $1.65 to $1.85 a share. It is scheduled to report third-quarter earnings on Oct. 26.

The recall is the most recent in a string of quality problems that have hurt Ford's bottom line. The company booked a $295 million charge in the first quarter related to fire risks in some SUVs and vans, and faulty door latches on some car models. In the second quarter, problems with the drive shaft in Transit vans cost $142 million.

Last week, Ford offered a voluntary fix to owners of 1.4 million late-model Explorer SUVs amid complaints about exhaust fumes leaking into the interior. Ford hasn't disclosed a cost estimate for the work, which it described as a complimentary service rather than a safety recall.

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(END) Dow Jones Newswires

October 18, 2017 14:25 ET (18:25 GMT)