Ford Motor Company Amid Record Recalls
Ford Motor Company announced its 90th recall of the year on October 4, 2025, impacting nearly 700,000 crossovers in the U.S. due to a fuel leak issue that poses a fire risk. This marks a record for the company, exceeding the previous record of 77 recalls set by General Motors in 2014. Ford’s 90 recalls are more than the combined total of the next five competitors in the automotive industry, according to the National Highway Traffic Safety Administration (NHTSA).
The recall is projected to cost Ford around $570 million, which will be categorized as a special item in its second-quarter earnings report. However, this charge is not expected to influence adjusted earnings or cash flow, which are vital metrics for investors. Last year, warranty costs significantly impacted Ford’s financial performance, adding approximately $800 million compared to the previous year.
As of early 2024, Ford reported substantial improvements, with the latest model years showing a 30% increase in quality over previous versions. Despite these assertions, the ongoing recalls and warranty costs remain a concern for investors as the company navigates recovery and operational enhancements over the next 18 months.
