Ford announces $295m charge in Q1 for recalls

NEW YORK, US: Ford set aside $295m in the first quarter for four safety recalls affecting more than 440,000 vehicles in North America, the auto giant announced on Wednesday.

The biggest group of affected vehicles (230,000) comprise a group of sedans and light trucks from model years between 2013 and 2015 that have a risk of under-hood fires due to poor coolant circulation.

Ford said there were 29 reported fires, but no injuries due to the defect.

Another large group of recalls (211,000) was an expansion of a previously announced safety announcement to replace door latches that were at risk of opening while the car was moving.

Ford said the expenses were included in its forecast last week, which included an estimate that first-quarter adjusted earnings would be 30 to 35 cents per share, below the 47 cents per share expected by analysts.

Source: AFP