Holders of Ford stock might take a hit as this quarter moves on because the company has announced a major and costly recall. Ford is recalling around 1.3m of its F-150 trucks, its best-selling model. The problem relates to malfunctioning side doors that need to be returned to the dealership for a replacement fitting. The recall is set to cost the company around $267m this quarter. The recall comes at a bad time for Ford, as its new CEO has just debuted his large structuring and cost-cutting plan.
FINSUM: We think Ford’s turnaround will eventually produce good results, but it may be a rocky 24 months to get there.