Ford Motor Co. (NYSE: F) is recalling about 575,000 Windstar vans in twenty-one northern U.S. states and Canada from models made between 1998 to 2003 because of the possibility that the van’s rear-axle may fracture from corrosion, said regulators from the National Highway Traffic Safety Administration on Friday.
Regulators opened a preliminary investigation on the problem on May 13th after receiving 234th reports of rear-axle fractures and two minor crashes. Since then, the number of complaints has risen to 950. The company said that the axle design allows it to collect road-salt slush, leading to rust.
A Ford spokesman said that recalls total about 463,000 in the United States and another 112,000 units in Canada. Windstar owners will be asked to bring their vans into Ford or Lincoln dealerships so that their axle can be inspected. If the axle shows a crack, they will be offered a repair or alternative transportation until parts become available. The company said that if they find no cracking, they will be informed when to have reinforcing brackets placed on their axle.
Ford Motor Company (Ford) is a producer of cars and trucks. Ford and its subsidiaries also engage in other businesses, including financing vehicles. It operates under two segments: Automotive and Financial Services. The Automotive segment includes the operations of Ford North America, Ford South America, Ford Europe, Ford Asia Pacific Africa and Volvo. The Financial services include the operations of Ford Motor Credit Company and Other Financial Services. In August 2010, the Company completed the sale of its Swedish Volvo Car unit and related assets to China’s Zhejiang Geely Holding Group Co.
Shares of Ford Motor Co. (NYSE: F) traded up 0.52% on Monday hitting $11.62 during mid-day trading.
