Legacy automaker Ford (F) apparently cannot catch a break lately. While we were enjoying a stretch of time in which information on recalls was thin on the ground, that changed in recent days with several recall notices emerging that covered hundreds of thousands of vehicles. That number only surged with the latest recall, as Ford put out recalls on over 227,000 vehicles throughout the United States. And that was not all, as it turned out. The latest set of recalls sent Ford shares slipping, down fractionally in Thursday afternoon’s trading.
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There were actually two sets of problems with the latest batch of recalls. First, 163,256 Ford Broncos got a recall notice over front seats that may have had loose bolts. Meanwhile, 56,841 Explorers and Lincoln models had “…windshields with visible air bubbles.” This also includes a third round, featuring another 6,909 Ford Econoline vans that had “…inoperative defrosting and defogging systems.”
The standard fix applies, according to word from the National Highway Traffic Safety Administration: dealers will replace all the faulty pieces at no charge to drivers. And while this is not the first time this sort of thing has come up, it is clear that Ford has been swimming in recalls over the last couple of weeks.
Tour Henry Wonka’s Factory
Meanwhile, in a move oddly reminiscent of Roald Dahl, Ford is opening up its new world headquarters for an open house event on November 16. Those interested in seeing the new building need only sign up online for a place—tickets are actually free—and when they do, they get access to a range of sights and events.
Ford is planning a car show featuring a range of privately-owned Ford classics, self-guided tours, live entertainment, and food trucks, among other things. The event runs from 11 AM to 4:30 PM on November 16, and will show off not only workspaces within the company, but also “employee wellness areas.”
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 10 Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 28.67% rally in its share price over the past year, the average F price target of $12.14 per share implies 7.58% downside risk.
