The Ford Motor Company (F) is recalling 90,736 automobiles due to engine intake valve issues that could lead to accidents. The National Highway Traffic Safety Administration (NHTSA) reported on Saturday that the faulty valves could break while driving and need to be tested. The recall follows an investigation that began in January 2022 in which Ford found 22 incidents where engine intake valves broke and fell into the combustion chamber, leading to significant engine damage.
The recall relates to autos manufactured in 2021-2022 under the Bronco, F-150, Edge, Explorer, Lincoln Nautilus, and Lincoln Aviator brands, with either a 2.7 liter or 3.0 liter Nano EcoBoost engine. Ford dealers will test each auto and replace the engines that are found faulty.
U.S. Regulator Identifies Issues with Ford’s Engine Valves
The NHTSA, which is the U.S. auto safety regulator, said that some of the engine intake valves could break while driving, resulting in “engine failure and a loss of drive power.” Ford’s analysis revealed that certain engine intake valves were not produced according to the design specifications for hardness. As a result, they were brittle and had a higher possibility of breaking under pressure.
Ford noted that the intake valve materials were sensitive to the supplier’s grinding processes, as they were not within control specifications. Accordingly, Ford changed the intake valve material for autos manufactured after October 31, 2021.
Insights from TipRanks’ Bulls Say, Bears Say Tool
Amid macro pressures and instances of product recalls, Wall Street analysts have mixed opinions on Ford. According to TipRanks’ Bulls Say, Bears Say tool, some analysts are positive about Ford’s electric vehicle (EV) ambitions. Bulls are optimistic about the company’s investments in the cost optimization of its EV platforms and the prospects of the Ford Pro unit, which includes commercial vehicles.
Meanwhile, Bears are concerned about continued EV pricing pressure and other challenges, including ongoing warranty issues.
Is Ford a Good Company to Buy?
Wall Street remains divided on Ford stock’s trajectory. On TipRanks, F stock has a Moderate Buy consensus rating based on five Buys, seven Holds, and one Sell rating. The average Ford Motor stock price target of $14 implies 25.1% upside potential from current levels. F shares are down 3.1% year to date.
