Ford Recalls Record Number of Vehicles
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 09 2026
0mins
Source: NASDAQ.COM
- Record Recall Numbers: Ford recalled a record 12.9 million vehicles in 2025, with the recent recall of 4.3 million nearly matching its total from 2024, highlighting significant ongoing quality control challenges for the company.
- Software Update Resolution: The recall is primarily due to the Integrated Trailer Module potentially losing communication with the vehicle while towing, which could lead to brake and turn signal failures; Ford plans to address this issue with an over-the-air software update, significantly reducing repair costs.
- Surging Warranty Costs: Ford's warranty expenses soared to approximately $2 billion in Q2 2024, representing 4% of sales, which is substantially higher than the historical average of 1.6% from 2011 to 2019, indicating a pressing need for improvements in quality management.
- Investor Risk Awareness: While the financial impact of this recall is expected to be limited, the spike in warranty costs previously caused Ford's shares to drop over 18% in July 2024, underscoring the importance for investors to closely monitor the company's quality improvement efforts.
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Analyst Views on F
Wall Street analysts forecast F stock price to fall
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 14.130
Low
11.00
Averages
13.65
High
16.00
Current: 14.130
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services, including BlueCruise (ADAS) and security. The Company's segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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