Ford Recalls Frost bitten Vehicles - Analyst Blog

Ford Motor Co. (F) will recall about 525,000 units of its Windstar minivans in the colder regions of the U.S., Canada and other countries due to a corrosion-related problem in the vehicles. The vehicles were manufactured between 1999 to 2003.

The National Highway Traffic Safety Administration (NHTSA) stated that cold leads to corrosion in the lower part of the vehicles that detaches the parts and reduce steering control. The authority has received 87 complaints.

NHTSA also revealed that Ford had received 74 reports related to the problem until last month. However, Ford stated that it is aware of only seven reported accidents with five minor injuries in which drivers claimed that the corrosion-related issue was the principal factor.

Of the total recalled vehicles, about 425,000 units are registered in the U.S, about 100,000 units in Canada, and fewer than 750 units in other countries. The automaker decided to notify owners of the minivans beginning in mid-February to take their vehicles to dealers for inspection and possible repair.

This is the second time since last year that Ford has recalled Windstars for similar problem. Last year, the automaker had recalled 575,000 units of the same lineup due to a problem with their rear axle. NHTSA found that the rear axle of the vehicles were apparently collecting road slush in the cold weather, leading to rust. The recall affected Windstars manufactured between 1998 and 2003.

Automotive safety recalls were highlighted by the media after Toyota Motors' (TM) announcement of largest-ever global recall of 11 million vehicles since September 2009. The Japanese automaker's recall was related to problems such as faulty accelerator gas pedals and slipping floor mats as well as defective braking systems.

The string of recalls has led Toyota to face numerous personal injury and accident death lawsuits in federal courts. The Transportation Department of U.S. has imposed $32.4 million in fines on Toyota related to two separate investigations due to late recall of millions of defective vehicles on top of the highest-ever fine of $16.4 million paid earlier in 2010 related to the same issue.