Ford Motor Co (F) announced on Thursday the recall of 39,000 SUVs after it received reports of 16 fires.
The US auto maker also advised SUV owners to park their vehicles outdoors and at a distance from structures.
The recall will affect some 2021 Ford Expedition and Lincoln Navigator models.
The move came as an engine compartment fire could erupt while the SUV is parked or being driven, even with the ignition off, Ford said.
One injury but no accidents were reported in relation with the issue.
Ford also said that 14 of the 16 affected vehicles were owned by rental car companies.
Earlier this week the company announced other recalls, including 310,000 Super Duty F-250, F-350, F-450 and F-550 trucks manufactured in 2016, as dust may accumulate in the steering wheel clock spring. This may cause an electrical disconnection and, as a result, driver air bags may not deploy as they should.
Ford Motor Co’s shares closed higher for the third time in the past ten trading sessions in New York on Thursday. The stock went up 0.55% ($0.07) to $12.85, after touching an intraday low at $12.63. The latter has been a price level not seen since May 12th ($12.15).
Shares of Ford Motor Company have retreated 38.13% so far in 2022 compared with an 18.16% loss for the benchmark index, S&P 500 (SPX).
In 2021, Ford Motor Co’s stock went up 136.29%, thus, it outperformed the S&P 500, which registered a 26.89% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 9 out of 18 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 7 – as “Buy”. The median price target on the stock stands at $19.82.