Summary
Ford Motor Company has announced a field service action to address coolant issues in certain vehicles equipped with 1.6-liter GTDI engines, and an expansion of a previous field service action concerning side door latch issues in certain vehicles. The estimated cost for these combined actions is approximately $295 million, expected to be primarily borne by Ford's North America and Europe business segments. Investors should note that this cost was already factored into Ford's first quarter 2017 adjusted pre-tax results guidance and the total company adjusted pre-tax profit guidance for the full year 2017, as previously communicated on March 23, 2017. Therefore, this announcement should not materially impact forward-looking financial expectations beyond what has already been disclosed.
Key Highlights
- 1Ford is initiating a field service action for coolant issues in specific vehicles with 1.6L GTDI engines.
- 2Ford is expanding an existing field service action related to side door latch problems.
- 3The combined estimated cost for these service actions is approximately $295 million.
- 4The financial impact will primarily affect the North America and Europe business units.
- 5This $295 million cost was already incorporated into the Q1 2017 and full-year 2017 financial guidance provided on March 23, 2017.
- 6The announcement is made under Regulation FD Disclosure.