HomeFinancial MarketsFord Stock Dips After 1.5 Million Vehicles Are Recalled Due to Brake...

Ford Stock Dips After 1.5 Million Vehicles Are Recalled Due to Brake and Wiper Issues

Ford Motor Co. stock are down 4.4 percent on Friday after the carmaker issued a recall for 1.5 million vehicles. The vehicles were recalled due to brakes and windshield wipers.

According to documents released by National Highway Traffic Safety Administration (NHTSA), the brake issue is related to the rupture-prone front brake hoses that can cause fluid leaking. The models that are most affected by the problem are Ford Fusion and Lincoln MKZ from 2013 and 2018.

“The driver may experience an increase in pedal travel together with a reduction in the rate of deceleration, increasing the risk of a crash,” NHTSA states.

Also, around 220,000 F-150 pickups were recalled due to faulty windshield wiper arms that have been susceptible to breaking.

Ford announced that it would notify the customers that are affected by the recall via letter. The car owners are instructed to contact their local dealership, where they will get a replacement part installed free of charge.

After the news came out, Ford’s shares dropped from $11.72 per share on Friday morning to close at $11.30 per share by the end of the day. The company’s stock lost more than 30 percent of its value in the past year.

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