A large recall from Ford that shows the weakness of global suppliers when something goes wrong.
A Ford Motor Company recall of 850,050 2013-14 C-MAX, Fusion, Escape and Lincoln MKZ vehicles in North America is now active because the airbags may not deploy. The so-called “restraints control module” may have a short circuit. If the short circuit occurs, the airbag warning indicator will illuminate on the panel but the airbags won’t deploy.
In a classic Friday afternoon recall statement designed to minimize coverage, Ford said that depending on the location of the short circuit, the airbags, pre-tensioners and side curtains might not function as intended in during a crash, increasing the risk of injury.
A business issue arises since the Escape has now been recalled a dismal 12 times during the past two years. As Ford’s third best selling vehicle – with more than 200,000 sold year-to-date – it is looking like a quality disaster with negative financial implications on profits and therefore shareholders. Ford (NYSE:F) said Monday, well after this story was initially published, that it expects its pre-tax profit margins for North America to be on the low end of its previously-issued guidance of 8% to 9%, therefor down from $7 to $8 billion, to ~$6 billion. Ford has reserved half a billion dollars for this one recall!
The short circuit may also affect the function of other systems that use data from the restraints control module, including stability control. In these cases, the corresponding warning indicator lamps would also illuminate. Ford did not name the supplier.
Ford Motor Company said it is not aware of any accidents or injuries related to this condition. Dealers will replace the restraints control module at no cost to the customer as is required by U.S. law.
