Summary
Ford Motor Company (F) has disclosed a field service action concerning a door latch issue affecting certain 2015-2017 model year trucks. This action is expected to result in an estimated charge of $267 million, which will be recognized in the fourth quarter of 2017. The company has confirmed that this recall will be borne by its North America business unit.
Key Highlights
- 1Ford is initiating a field service action to address a door latch defect in specific 2015-2017 model year trucks.
- 2The estimated cost of this service action is $267 million.
- 3The expense associated with this recall will impact the company's fourth quarter 2017 financial results.
- 4The financial impact of this action is expected to be absorbed by the North America business unit.
- 5Despite this recall cost, Ford is maintaining its full-year 2017 adjusted earnings per share guidance of $1.65 to $1.85.