Core Insights - Ford Motor Company is facing significant challenges in 2025, primarily due to a high volume of recalls and increasing warranty claims costs, which are impacting earnings [2][11]. Recall Issues - Ford is recalling 1.9 million vehicles globally, with approximately 1.45 million in the U.S., due to rearview camera issues that result in distorted or blank images [3]. - In 2025, Ford has issued a record 109 recalls in the U.S., significantly higher than its closest competitor, Stellantis, which has issued 30 recalls [6]. - The recalls this year cover a wide range of problems, indicating systemic issues rather than isolated faults [10]. Financial Impact - The company has reported 44,123 warranty claims related to the recent recall, which may lead to increased costs as dealers will need to inspect and replace vehicle cameras [7]. - Warranty costs as a percentage of revenue have been rising for Ford, suggesting that the focus on quality has not yet translated into lower warranty claims costs [8]. Quality Concerns - Despite efforts to improve quality, the number of recalls has increased, raising concerns about the overall quality control processes within the company [11]. - The situation in 2025 is described as a disaster for Ford's recalls, with potential implications for upcoming earnings [11].

Core Points - Ford Motor Company is recalling over 850,000 units due to low-pressure fuel pumps that may fail, potentially leading to engine stalls while driving [1][2] - The National Highway Traffic Safety Administration (NHTSA) has indicated that the fuel pump issue increases the risk of a crash, and a remedy is currently under development [2][3] - Ford has noted that fuel pump failures are more likely to occur in warm weather and under hot fuel conditions, with signs of imminent failure including poor engine performance [3] Affected Vehicles - The recall affects 28 models, including the 2021-2023 Ford Bronco, 2022 Ford Expedition, 2021-2023 Ford Explorer, and several Super Duty models [4][5] - Ford has recalled more than 1,600 units this year for various issues, including damaged wire harnesses and overheating batteries [4]

Core Insights - The National Highway Traffic Safety Administration (NHTSA) is investigating Ford's BlueCruise hands-free driver-assistance system following two fatal crashes, marking a significant regulatory scrutiny on the technology [1][4][8] - The NHTSA has sent Ford a detailed list of 25 questions regarding the BlueCruise system, including requests for internal documents related to the crashes and the software's development [2][3][8] - The investigation was escalated to an "engineering analysis" level, which is a precursor to potential recall actions by the NHTSA [3] Group 1: Investigation Details - The NHTSA's Office of Defects Investigation opened the investigation in April 2024 after two fatal crashes involving BlueCruise, where drivers crashed into stationary vehicles [4][8] - The NHTSA's inquiry includes basic questions about the vehicles equipped with BlueCruise and more complex requests for information on the software's logic and algorithms for hazard detection [2][8] - Ford has until August 6 to respond to the NHTSA's questions or risk facing civil penalties [9] Group 2: System Capabilities and Limitations - BlueCruise is designed to operate on pre-mapped highways, utilizing cameras, radar sensors, and software for steering, speed, and braking [5] - The system includes an in-cabin camera with eye-tracking to ensure driver attention, but the recent crashes have raised concerns about its ability to detect stationary objects, a known issue with similar systems like Tesla's [5][6][8] - The NHTSA noted limitations in BlueCruise's performance under poor visibility conditions, as both fatal incidents occurred at night [8]

Ford Motor Company - Ford is recalling 273,789 Expedition and Lincoln Navigator SUVs from model years 2022 to 2024 due to a potential brake defect [1] - The brake defect may cause longer brake pedal travel and a reduction in deceleration, increasing the likelihood of a collision [2] - Only about 1% of the recalled SUVs are expected to have this issue, and there have been no reported crashes or injuries related to it [3] - Ford sold over 78,000 Expeditions and 15,000 Navigators in the U.S. last year, indicating the significance of these models in its lineup [4] Waymo LLC - Waymo is recalling 1,212 autonomous vehicles to address software issues that could lead to collisions with road barriers [5] - The company operates over 1,500 vehicles and provides more than 250,000 fully autonomous paid rides each week [5] - Waymo plans to expand its services to additional cities including Atlanta, Miami, and Washington, D.C. [5] Volvo - Volvo issued a recall affecting 413,151 U.S. vehicles, including 2021–2025 XC40 models, due to a malfunctioning rearview camera system [6] - The issue will be resolved through a software update, either at dealerships or via over-the-air installation [6]

Core Viewpoint - Ford Motor Company has issued a safety recall for over 270,000 vehicles in the US due to brake defects that could increase the risk of a crash [1][4]. Group 1: Recall Details - The recall affects 223,315 Ford Expeditions and 50,474 Lincoln Navigators from model years 2022 through 2024 [1][8]. - The issue is linked to a defect in the assembly process at Ford's Kentucky Truck Plant, where the front brake line may contact the engine air cleaner outlet pipe, potentially leading to a brake line leak [2][4]. Group 2: Safety Implications - Over time, the contact can cause the brake line to weaken, crack, or leak, which may result in brake failure [5]. - A brake line leak could lead to longer brake pedal travel and a reduction in deceleration rate, increasing the risk of a crash [5][6]. Group 3: Investigation and Resolution - Ford began investigating the issue in February after an increase in brake system warranty claims for 2022 model year Navigators [6]. - A production modification introduced in November 2024 is expected to prevent brake line interference [6]. Group 4: Customer Notification and Support - Owners of affected models will be notified by mail between May 26 and May 30, with instructions to bring their vehicles to a dealership for inspection [9]. - Dealers will replace the brake line and/or air cleaner outlet pipe at no cost, and reimbursement for prior repairs related to the issue will be available [9].

Financial Performance - Total company adjusted EBIT was $10 billion[15], a decrease of 63% year-over-year[19] - Total company revenue reached $41 billion[15], driven by "freedom of choice" global product portfolio[16] - Adjusted EPS was $014[19], a decrease of $035 year-over-year[19] - The company had $27 billion in cash and $45 billion in liquidity[17] - Adjusted Free Cash Flow was negative $(15) billion[19], a decrease of $10 billion year-over-year[19] Segment Performance - Ford Blue's EBIT was $01 billion with a 05% margin[19] - Ford Model e's EBIT was negative $(08) billion with a (684)% margin[19] - Ford Pro's EBIT was $13 billion with an 86% margin[19] - Ford Credit's EBT was $06 billion, up $03 billion year-over-year[51] Growth and Market Position - U S electrified vehicle sales were up 26%[16] - Bronco sales increased by 35%[15] - Ford is America's 1 seller of total pickups[16] - Average transaction prices for the new Ford Expedition and Lincoln Navigator increased by 18% and 23%, respectively[15] Factors Affecting Performance - First quarter EBIT was adversely impacted by nearly $200 million of added tariff cost[15] - Planned production downtime and targeted inventory reductions affected volume[27] - Strong product pricing was partially offset by moderated fleet pricing[27] 2025 Guidance - The company is suspending all FY2025 guidance due to material tariff-related near-term risks[57] - The estimated full-year gross cost of tariffs is approximately $25 billion, with a net adjusted EBIT impact of approximately $(15) billion[57]

Core Points - Ford Motor is recalling over 148,000 vehicles in the US due to safety concerns related to braking performance and powertrain control issues [1][3] Group 1: Recall Details - The first recall involves 123,611 vehicles, specifically certain 2017–18 Ford F-150, Expedition, and Lincoln Navigator models, due to a fluid leak that may reduce braking performance and increase stopping distance [1][4] - The second recall affects 24,655 of the 2025 Explorer vehicles, where a powertrain control module (PCM) may reset while driving, potentially damaging the vehicle's park system or causing an engine stall [3] Group 2: Dealer Actions - Dealers are expected to replace affected parts such as the master cylinder or brake booster free of charge for the first recall [2] - For the second recall, dealers will fix the software issue at no cost, with owners being notified by May 26 [3]

Core Viewpoint - Ford Motor has reported a significant decline in auto sales in the United States, facing challenges from shifting consumer demand, production adjustments, and increasing competition [1][4]. Sales Performance - Ford's overall auto sales in the U.S. dropped by 8.9% in February 2025, with gasoline-powered vehicle sales declining by 12.7% [1][2]. - Sales of electrified models, including hybrids and EVs, experienced double-digit growth, while EV sales grew by 15% to 7,326 units, driven by strong Mustang Mach-E and E-Transit van sales [2][3]. - The F-150 Lightning saw a 14.7% decline in sales due to intensified competition from other electric pickups [3]. - SUV sales fell by 24.4%, and car sales decreased by 32.2%, while truck sales recorded a growth of 7.7% [3]. Financial Outlook - For 2025, Ford expects adjusted EBIT to be between $7 billion and $8.5 billion, down from $10.2 billion in 2024 [11]. - The company anticipates generating adjusted free cash flow of $3.5 billion to $4.5 billion in 2025, compared to $6.7 billion in 2024 [11]. - The Zacks Consensus Estimate for Ford's 2025 revenues is $166.15 billion, indicating a year-over-year decline of 3.78% [13]. Market Challenges - The Trump administration's 25% tariff on auto imports from Mexico, Canada, and the EU poses a significant challenge, as Ford exported nearly 196,000 cars from Mexico to North America in the first half of 2024 [7]. - Increased pricing pressure and competition in the EV market, particularly from lower-cost alternatives from Chinese automakers, are additional concerns for Ford [9]. - Changing customer preferences and high battery costs are impacting the profitability of Ford's EVs [10]. Stock Performance - Over the trailing 12-month period, Ford's shares have decreased by 24.9%, underperforming the Zacks Auto, Tires and Trucks sector's decline of 2.7% [4]. - The consensus estimate for Ford's first-quarter 2025 EPS is 7 cents, reflecting a significant year-over-year decline of 85.71% [12].