Ford issues recall for 402,000 vans, will take $142 million charge

on Jul3

Ford said the issue will not affect Transits with fewer than 30,000 miles on them.

UPDATED: 6/28/17 10:41 am ET – adds details

DETROIT — Ford Motor Co. on Wednesday issued three recalls in North America, led by a callback of 402,462 Transit vans that will cost the company $142 million.

The automaker said the affected vans have a faulty driveshaft flexible coupling. The defect could lead to the separation of the driveshaft, which could result in a loss of power, unintended vehicle movement and damage to brake and fuel lines.

Ford is not aware of any accidents or injuries related to the Transit issue.

Ford disclosed the cost of the recall in a Wednesday filing with the U.S. Securities and Exchange Commission. The charge will be incurred in the second quarter results of the North American unit. The company is due to report second-quarter earnings on July 26.

The affected 2015-17 model-year vehicles were built at Kansas City Assembly Plant between Jan. 17, 2014, and June 15, 2017.

Ford said the issue will not affect Transits with fewer than 30,000 miles on them, or vans that have had a driveshaft or driveshaft flexible coupling replaced within the last 30,000 miles.

For vehicles with more than 30,000 miles, Ford said the interim repair will consist of replacing the driveshaft flexible coupling every 30,000 miles until the final repair is available and completed. Owners will be notified by mail.

In addition, Ford said it’s recalling four 2017 model-year Police Interceptor utilities to repair second-row seat attachment studs, as well as three 2016 model-year Escapes with faulty driver knee airbag modules.

Ford is not aware of any accidents or injuries with either issue, and will replace the affected parts for free.



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