Ford set to spend $295 million on two latest recalls

2013 Ford Escape

Ford Motor, the second biggest U.S. car manufacturer, on Wednesday announced 2 new recalls impacting 440,000 cars and expects to spend about $295 million to resolve the issues.

The recalls consist of 211,000 vehicles in North America to replace possibly malfunctioning side door latches and 230,000 automobiles for under-hood fire threats. Ford stated it has reports of 29 fires however no injuries.

Ford stated the expense of the recalls were consisted in its upgraded incomes guidance released last week.

Last week, Ford cautioned it expects lower revenues per share in the first quarter and lower pretax earnings in 2017 due to greater costs on commodities, guarantees and investments and a fall in sales volumes especially fleet sales.

The automaker had formerly recalled almost 4 million automobiles for door lock issues in 6 separate recalls from 2014, consisting of 2.4 million vehicles recalled in late 2016. In September, Ford informed it was taking a $640 million charge for its broadened side-door lock recalls.

The new door lock recall consists of 211,000 2014 model year Ford Fiesta, 2013-14 Ford Blend and 2013-14 Lincoln MKZ cars. Ford stated it not knowledgeable about any crashes or injuries related to this concern.

The U.S. National Highway Traffic Safety Administration (NHTSA) stated in 2015 it had 1,102 reports related to the issue and Ford said it had 10,883 warranty claims connected to door latch failures. Few owners told NHTSA they used ropes or tape or seatbelts to limit doors.

The under-hood fire recall concerns 230,000 2013-15 Ford Escape, Ford Fiesta ST, Ford Fusion and Ford Transit Connect vehicles geared up with 1.6-liter GTDI engines in North America.

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