Ford Motor Company (NYSE: F) has issued a global recall for approximately 317,000 Mustang Mach-E vehicles due to a malfunction that may prevent drivers from exiting the vehicle, posing safety risks. The recall comes amid a challenging period for Ford, which has struggled with profitability in its Model-e segment, reporting losses of $4.7 billion in 2023 and projected losses of nearly $5.1 billion in 2024.
The recall and subsequent stop-sale order for the Mustang Mach-E may hinder Ford’s near-term electric vehicle sales growth, which, as of May, showed only a 2.8% increase year-to-date. Despite total electrified vehicle sales increasing by 18%, driven mainly by a 31% rise in hybrid sales, the company’s efforts to mitigate operational costs, including a projected $1.5 billion impact from tariffs in 2025, add layers of uncertainty to its financial outlook.
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