The warranties on clutch and related hardware in about 560 000 Fiesta and Focus vehicles in Canada and the United States are to be extended, Ford Motor Company (F) said, after customers reported issues with the cars transmission.
Ford shares closed lower for a fifth consecutive trading session in New York on Thursday. The stock went down 1.56% ($0.14) to $8.86, after touching an intraday low at $8.78, or a price level not seen since March 29th ($8.71).
Shares of Ford Motor Company have risen 15.82% so far in 2019 compared with a 13.59% gain for the benchmark index, S&P 500 (SPX).
In 2018, Ford Motor Co’s stock went down 38.75%, thus, it underperformed the S&P 500, which registered a 6.24% loss.
The issues with the above mentioned vehicles involve a degree of vibration when the driver operates the DPS6 automatic transmission at low speeds as well as a possibility for that transmission to default to neutral.
The auto maker said that any repair charges, incurred by owners of 2014 through 2016 Focus and Fiesta models, would be reimbursed.
“Ford understands and regrets that many customers have been inconvenienced and frustrated by the performance of the DPS6 transmission,” Dave Filipe, Ford Motor Cos vice president of power train engineering, was quoted as saying by Reuters.
Meanwhile, the National Highway Traffic Safety Administration said earlier this week that it had reviewed recent complaints and other data related to the client satisfaction campaigns, which the US auto maker had disclosed.
“Based on a review of this information, and other information including severity and frequency, NHTSA has not found evidence of an unreasonable risk to safety,” the Washington, DC-based agency said in a statement.
The regulator also said that it would “continue to monitor complaints and other data, maintain communication with Ford, and take action as necessary.”
Analyst stock price forecast and recommendation
According to CNN Money, the 16 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $10.25, with a high estimate of $13.00 and a low estimate of $8.20. The median estimate represents a 15.69% upside compared to the closing price of $8.86 on August 15th.
The same media also reported that at least 11 out of 19 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 6 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.
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