Ford F has asked owners of F-150 pickups with the Trailer Tow Max Duty package to contact the dealership to get their vehicles tested for newly identified defects. Per the National Highway Transportation Safety Administration (“NHTSA”) website, the auto manufacturer is recalling 112,965 F-150 pickups due to a defect in the rear axle hub.
Per NHTSA, defective axle hub splines can result in a vehicle rolling away in the absence of a parking brake or cause a loss of drive power, increasing the risk of a crash in both cases.
Per a letter filed by Ford with federal safety regulators, F-150 pickups with the tow package and a 9.75-inch heavy-duty axle with a three-quarters float axle design, including 54,509 trucks from the model year 2021, 47,886 from the model year 2022 and 10,570 from the model year 2023, are impacted by the defect.
Per Ford, currently, there’s no fix for the defect and a remedy is under development. Per Ford’s safety filing, owners can take their vehicles to the dealership for interim repair if they experience symptoms related to rear axle bolt breakage. The symptoms include clicking or rattling noises.
Ford will notify owners of the vehicle via letter on Jan 29, 2024. The automaker notified safety regulators about the recall on Dec 22, 2023 and wrote that it did not have any reports of accidents or injuries related to the issue.
In another development, the company is raising the price of some 2024 F-150 Lightning models. For an entry-level Pro model, the starting price will be $54,995, up from $49,995 for the 2023 model and for the Platinum Black trim, the starting price will be $92,995, down from $97,995 for the 2023 model.
The automaker has lowered the prices of Platinum and Platinum Black models, with additional features, by $5,000 and $7,000, respectively.
It has been adjusting the prices of the F-150 Lightning and the all-electric Mustang Mach-E based on consumer demand and raw material costs.
Considering lower-than-anticipated demand, the automaker slashed its planned production target for the F-150 Lightning to half in 2024 after significantly increasing its plant capacity for electric vehicles last year.
Per Ford’s spokesperson, the company is adjusting prices, production and trim packages to optimize the mix of sales growth, profitability and customer access to the IRA tax benefit.
The price changes do not include the $2,095 destination fee and any federal or local incentives for buying an all-electric vehicle.
Zacks Rank & Key Picks
F currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, NIO Inc. NIO, and Toyota Motor Corporation TM. While VLVLY sports a Zacks Rank #1 (Strong Buy) at present, NIO and TM each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have improved 8 cents and 7 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for NIO’s 2023 sales indicates year-over-year growth of 11.8%. The EPS estimates for 2023 and 2024 have improved by 14 cents and 13 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings implies year-over-year growth of 11% and 45.4%, respectively. The EPS estimates for 2024 and 2025 have moved up $1.98 and 5 cents, respectively, in the past 60 days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
AB Volvo (VLVLY) : Free Stock Analysis Report
NIO Inc. (NIO) : Free Stock Analysis Report