Ford's Stock Reverses Lower After Recall Of 681,000 Cars

By Tomi Kilgore Markets MarketWatch Pulse

Ford Motor Co.'s stock slumped 1.5% in midday trade Friday, reversing an earlier 1.2% intraday gain, after the auto maker issued two safety recalls involving more than 650,000 Ford Fusion and Lincoln MKZ model cars. "In the affected vehicles, increased temperatures generated during deployment of the seat belt anchor pretensioner could cause pretensioner cables to separate, which may inadequately restrain an occupant in a crash, increasing risk of injury," Ford said in a statement. The recall is for Fusions built from 2013 to 2016 and for Lincolns built from 2013 to 2015. Ford said 680,872 vehicles are affected, including 602,739 in the U.S., 35,614 in Canada and 8,665 in Mexico. Ford shares had closed Thursday at a two-month high after Ford's November sales report. They have now shed 13% year to date, while General Motors Co.'s stock has gained 4.5% and the S&P 500 has climbed 7.2%.

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