The U.S. National Highway Traffic Safety Administration (NHTSA) has opened up an investigation into around 112,567 Ford (F) Sports Utility Vehicles (SUVs) regarding a problem with their seatbelts. The auto regulator stated that it had received three complaints alleging an unexpected deployment of the seat belt retractor pretensioner. According to the NHTSA, affected users reported hearing a loud noise, immediately followed by the seat belt tightening rapidly and locking in place.
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Ford Responds to the Investigation
In response, Ford stated that it is cooperating with the NHTSA’s investigation, which includes the Ford Expedition and its luxury SUV, the Lincoln Navigator from model years 2019-2020. Meanwhile, the regulator has opened a separate probe into 456,565 additional Ford vehicles due to reports of motive power loss and electrical system failures. This second inquiry involves 2021-2024 models of the Ford Bronco Sport crossover SUVs and Maverick pickup trucks, both of which share the same platform.
Ford Faces Increased Scrutiny from the NHTSA
The scrutiny comes shortly after Ford agreed to pay a $165 million civil penalty for failing to address a prior safety issue promptly. This penalty was related to an earlier investigation into defective rearview cameras that prompted Ford to recall 620,246 vehicles in 2020. Ford later expanded the recall in 2022 and again in March 2023, adding approximately 24,000 vehicles to the list.
Is Ford Stock a Good Buy Right Now?
Analysts remain sidelined about Ford stock, with a Hold consensus rating based on five Buys, 10 Holds, and one Sell. Over the past year, Ford has increased by more than 10%, and the average Ford price target of $11.75 implies an upside potential of 4.9% from current levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
