Dealer lots and storage lots are filled with brand-new 2023 Ford Explorers that require repair and are going nowhere soon.
A so-far unfixable problem with the popular three-row SUV is frustrating customers, dealers and shareholders.
It’s also cutting into sales and profits.
Ford Motor Co. issued a stop sale on its 2023 Explorer in mid-May, according to documents filed with the National Highway Traffic Safety Administration (NHTSA).
Vehicles repaired for a defective rearview camera system under a January recall revealed the fix wasn’t effective.
Ford says in regulatory documents it has no estimated repair date to keep the 360 camera system from blacking out while in use, which creates a crash risk. More than 300,000 Explorers with model years 2020-23 are affected. The automaker has issued a stop-sale on the vehicles going into a third month.
“Root cause is unknown,” Ford wrote to federal safety officials in a letter dated May 12 and filed with NHTSA. “Remedy under development.”
A Ford spokesman said Tuesday it has identified the issue and is weeks away from a timeline it hopes to share with dealers and customers for replacement parts to repair the vehicles. But the company website gave no indication of any time frame and no update had been filed with federal regulators.
Dealers are not supposed to sell any vehicles, used or new, with an open recall, Ford confirmed.
Ford received more than 2,000 warranty claims by Nov. 30 for the initial problem, and reports of 17 accidents. Consumers began returning vehicles for repairs by March, according to documents filed with federal safety regulators.
The problem is yet another self-inflicted Ford recall, analysts said.
Industry observers noticed that second-quarter sales of the vehicle sank 23% to 46,362 from April through June compared with a year earlier.
“Explorer is down, as sales of Explorer and (Lincoln) Aviator have both been impacted by a 360-camera recall. There is currently a stop sale on all Explorers equipped with 360 cameras. That is impacting sales of Explorer in Q2 and in July,” Erich Merkle, Ford U.S. sales analyst, told the Free Press. “Explorer is our No. 2-selling vehicle behind F-Series pickups.”
As of Tuesday, Ford was still working to identify a solution.
Unhappy Ford customer
Tom Sarb, 71, a retired attorney from Grand Rapids, is a longtime Ford customer who wants to replace his 2013 Explorer with a 2023 Explorer. He placed an order for about $50,000 in February and learned in March it would be built in early May. Since then, Saarb told the Detroit Free Press, crickets.
“I kept checking their tracking,” he said Monday. “I got something that said it was in production as of May 5 and that’s where it has stood every since,” he said. “I received an email May 16 telling me they’re going to delay due to supply chain challenges, and they would communicate every 45 days. At the end of the 45th day, I got something saying supply chain challenges are still causing delays in production beyond their control. I think it has to do with the 360-degree camera.”
Sarb has left messages with Ford trying to get answers. “Nobody can tell me when they expect to solve the problem. I wonder, has my vehicle been sitting in a parking lot for the last three months while they figure out how to deal with this. I’ve been trying to get a response.”
Ford said the Explorer has been plagued by parts supply issues, as well as the recall.
Unhappy Ford dealer
Customers aren’t alone in wanting answers from Ford, Mark Douglas, president of Avis Ford in Southfield, told the Free Press. Explorer is the source of headaches that need attention, he said.
“You’ve got so many vehicles in stock that you can’t sell,” Douglas said. “This is hitting all dealers.”
Ford responds
As noted in the recall, “customers may intermittently experience a rear camera blue or black image on the SYNC screen when the vehicle is placed in reverse or when the 360-degree view is selected and available (during low-speed operation),” Ford spokesman Said Deep told the Free Press. “Once displayed, the rear camera blue or black image may persist for the remainder of the ignition ON cycle. Once reset, the issue is likely to reoccur …”
For current Explorer owners, he said, an interim repair that requires updating software is intended to offer better rear camera performance but is not a permanent fix. The temporary repair will reduce the blue or black screen issue and not require the customer to turn the vehicle on and off again, Deep said.
As for delaying new customers who want their Explorers, Deep said, the automaker is doing all it can.
“We acknowledge this has taken too long. We know this is frustrating for our customers and dealers,” he said. “Our focus is to provide a high quality fix. We are dedicating more engineering resources to work in partnership with our suppliers on camera-related technologies to resolve this matter.”
Ford reported 250 warranty repairs by March 21 on vehicles that had already gone in for recall repair.
Analyst: Ford needs to focus on execution
Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, said the automaker has seen success with its high-profile electric vehicles, but focusing on products that have earned loyal customers is essential.
“Ford has spent so much time concentrating on rolling out the Mach-E and Lightning, headline vehicles, but they have lost focus on the core stuff, including the Explorer,” Fiorani said. “The transition to EVs is going to take a long time. Ford needs to get back and making sure buyers of Explorers are happy and dealers have products they can sell and so momentum continues.”
Ford continues to damage the brand with ongoing recalls, he said.
“It’s sad to see a 120-year-old company that has a reputation for recalls, that the dealers and the buying public kind of expect these things,” Fiorani said. “The fact that Ford makes so many of these after-the-fact updates and the competition is not, it looks bad for Ford.”
More:Shareholders ask Ford execs to explain plan for fixing quality
More:Ford’s ‘self-inflicted’ recalls, warranty costs put automaker at competitive disadvantage
Lincolns recalled, too
Explorers aren’t the only vehicle with the unfixable problem.
Ford has a stop sale on more than 80,000 2020-23 Lincoln Aviators and more than 30,000 2020-22 Corsairs.
The automaker revealed in its regulatory documents that the automaker became aware of issues in March 2022 but didn’t see significant growth in warranty claims until late November. Since then, warranty claims have spiked.
Contact Phoebe Wall Howard: 313-618-1034 or phoward@freepress.com. Follow her on Twitter @phoebesaid.