Shares in Ford Motor Company (NYSE:F) brushed off any jitters following another costly vehicle recall today, with the stock adding 0.32% to $11.12 in New York.
The safety recall will affect around 400,000 Transits built in the automaker’s Kansas City plant in the last two years.
“In the affected vehicles, continuing to operate a vehicle with a cracked flexible coupling may cause separation of the driveshaft, resulting in a loss of motive power while driving or unintended vehicle movement in park without the parking brake applied,” Ford said.
“In addition, separation of the driveshaft from the transmission can result in secondary damage to surrounding components, including brake and fuel lines. A driveshaft separation may increase the risk of injury or crash.”
The New York-listed car giant said it hadn’t identified any crashes or injuries connected to the defect.
Ford hasn’t figured out how to permanently fix the issue yet, but said the vans don’t need repairing until the vehicle has been driven for 30,000.
For now, it will keep replacing the affected parts every 30,000 miles while it works on a “final repair”.
The recall is expected to cost the automaker the best part of US$150mln and is the latest blow to the group’s bottom line.
At the end of last year, Ford had to shell out US$640mln in order to fix 2.4mln vehicles with faulty doors that could fly open while in motion.