Ford On Hook for Hundreds of Millions in New Recall
Automaker may also face legal action over its restructuring effort.
February 8, 2021
Issues with Takata airbags have haunted automakers for years. Even though Ford (F) recently issued a recall related to Takata airbags that cost it hundreds of millions of dollars, the company’s latest 10-K reveals regulators have launched a new inquiry focused on the safety of tens of millions of Takata airbags:
“For example, NHTSA and the automotive industry are currently engaged in a study of the safety of approximately 56 million Takata desiccated airbag inflators in the United States. Of these, approximately three and a half million of the inflators are in our vehicles.”
If the inflators are deemed defective, investors can expect another costly recall:
“Our recent experience recalling about three million Takata airbag inflators with a different design resulted in us incurring a charge of $610 million in our fourth quarter 2020 results.”
Separately, Ford’s goal of embracing technology and adopting processes that emphasize simplicity, speed and agility, efficiency, and accountability could land it in hot water. In its 2020 10-K, Ford warns its restructuring effort may result in legal action from a variety of parties:
“...such restructuring actions may subject us to potential claims from employees, suppliers, dealers, or governmental authorities or harm our reputation.”
Related: GM, STLA
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