Ford to recall 400K Transit vans, take $142M charge

Ford (NYSE:F) announced on Wednesday that it will recall 402,462 Transit vans and buses in North America, costing the automaker $142 million.

The recall affects certain 2015 to 2017 Ford Transit vehicles with medium, long and extended wheelbases, as well as chassis cabs with medium wheelbases. Ford said the driveshaft flexible coupling may crack, causing a separation of the driveshaft and loss of power while driving.

Vehicles included in the recall were built at Ford’s Kansas City Assembly Plant between Jan. 17, 2014, to June 15, 2017. Most of the vehicles, approximately 370,630, are located in the U.S.

Ford said there are no reported accidents or injuries related to the defect.

Based on field data, no immediate repairs are necessary if an owner’s vehicle has under 30,000 miles or if the coupling was replaced within the last 30,000 miles driven, Ford said. In other vehicles, dealers will install a new coupling every 30,000 miles until Ford develops a permanent fix. Dealers will make repairs at no cost to owners.

The fix will cost Ford’s North America unit an estimated $142 million in additional expenses, according to a filing with the SEC.

Ford said it will provide any updates to its full-year profit outlook in connection with its second-quarter earnings report, which is scheduled for July 26.

In the first quarter of 2017, Ford wrote down $295 million for two separate recalls.

Also on Wednesday, Ford announced two small recalls affecting a total of four Police Interceptor SUVs and three Escape SUVs in the U.S.

Ticker	Security	Last	Change	Change %
F	FORD MOTOR CO.	11.13	+0.03	+0.27%