Ford Recalls 575,000 Windstars - Analyst Blog

Ford Motor Co. (F) will recall 575,000 units of its Windstar vans in the cold weather states in the U.S. and Canada due to a problem with their rear axle. The National Highway Traffic Safety Administration (NHTSA) began an investigation into the problem during May this year and found that the rear axle of the vehicles appears to collect road slush, leading to rust.

NHTSA received 234 complaints of rear axle fractures and reports of 2 minor crashes related to the problem in the vehicles before it began investigation. Recently, the number of complaints rose to 950.

The recall affects Windstars manufactured between 1998 and 2003. It involves 463,000 vehicles in the U.S., including Connecticut, Delaware, the District of Columbia, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia and Wisconsin. The remaining vehicles will be recalled in Canada.

The vehicle owners will be asked to bring their vans into Ford or Lincoln-Mercury dealerships for inspection of the axle soon. If any crack is detected, the owners will be offered a repair or alternative vehicles, until parts are available.

Automotive safety recalls have captured media focus after Toyota Motors’ (TM) announcement of largest-ever global recall of 11 million vehicles since October last year. 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 wrongful death lawsuits in federal courts. The U.S. government also imposed the highest-ever fine of $16.4 million on Toyota, accusing it of a deliberate delay in recalling the vehicles by hiding its flaws even though manufacturers are legally obligated to notify the U.S. safety regulators within five business days once they come to know of a safety defect.

Last month, Ford announced the recall of 33,700 units of its Transit Connect small commercial vans due to a defective interior liner that fails to meet any of the safety requirements for head protection. The defective vehicles were manufactured between December 2008 and May 2010.
 
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