Ford Motor Co. (F: 11.10 0.00 0.00%) and Chrysler LLC have joined the recall parade, close on the heels of Toyota Motors Co. (TM: 71.07 0.00 0.00%). Together, Ford and Chrysler have announced they will recall more than 55,000 vehicles.Ford will recall 33,700 units of its Transit Connect small commercial vans due to a defective interior liner that fails to meet any of the safety requirements for head protection. The faulty vehicles had been manufactured between December 2008 and May of this year. The automaker will ask its dealers to stop selling the vehicles until the problem is fixed.
Chrysler, on the other hand, will recall 22,000 units of its SUV lines — Jeep Liberty, Jeep Wrangler and Dodge Nitro — and Ram 1500 trucks. The vehicles, manufactured between April and May this year, have defective brake tubes that are causing the brake fluid to leak. The automaker has also decided to halt sales of the vehicles until this is taken care of.
Vehicle recalls have become the talk of the town after Toyota’s announcement of the largest-ever global recall of more than 8.5 million vehicles since October last year related to problems such as faulty accelerator gas pedals and slipping floor mats, as well as faulty braking systems. Toyota’s recall included popular models such as 2010 Prius hybrid, Toyota Camry and Lexus luxury sedans.
The string of recalls has already tarnished Toyota’s reputation, resulting in declining sales, lower vehicle resale value and fallen stock price. To add to its woes, the U.S. government has imposed the highest-ever fine of $16.4 million on the company, accusing it of a deliberate delay in recalling the vehicles by hiding its flaws. The company also faces numerous personal injury and wrongful death lawsuits, amounting to $4 billion in federal courts.
| Analysts' Targets | |
| Credit Suisse | $10 |
| Hold | |
| Wednesday, April 28, 2010 | |
| Argus Research | $15 |
| Buy | |
| Thursday, January 14, 2010 | |
1 comment:
Very useful post send by you for car owners. The recall of vehicles by different automobile companies will satisfy the existing customers. My friend has a Ford Fiesta, which has some trouble. I think your information may benifit to him. Thank you.
Post a Comment