Ford to Take $5.7 Billion Charge for Fuel Injector Issues

Generated by AI AgentMarket Intel
Wednesday, Jul 16, 2025 8:08 am ET1min read
Aime RobotAime Summary

- Ford will allocate $5.7 billion for a special charge due to fuel injector issues in certain models.

- The charge targets 2021-2024 Bronco Sport, 2020-2022 Escape, and 2019-2024 Kuga models, upgrading prior recalls.

- This is Ford’s third recent safety issue, including door lock and fuel pump recalls affecting over 850,000 vehicles.

- The expense won’t impact adjusted earnings, EPS, or free cash flow metrics in Q2 2025.

Ford Motor Company has announced that it will allocate approximately $5.7 billion for a special charge due to issues with fuel injectors in certain vehicle models. This decision follows an evaluation of the repair plan, which is expected to incur significant costs. The expense will be recorded as a special item in Ford's second-quarter financial report for 2025. Notably, this charge will not impact the company's adjusted earnings, adjusted earnings per share, or adjusted free cash flow, which are key financial metrics.

The service action will target specific models, including the 2021-2024 Bronco Sport, 2020-2022 Escape, and 2019-2024 Kuga. This initiative is an extension and upgrade of previous recall measures implemented in 2022 and 2024. Initially, Ford addressed the issue through software updates, but this time, the company will directly replace potentially defective fuel injectors. This proactive approach underscores Ford's commitment to maintaining high standards of quality and safety for its vehicles.

This is the third significant safety issue Ford has faced in recent weeks. Earlier, the company disclosed problems with the door lock system in the Mustang Mach-E model and a low-pressure fuel pump issue affecting over 850,000 vehicles, which could potentially cause engine stalling. Additionally, Ford has announced an additional recall of 694,271 vehicles in the U.S. market due to the risk of fuel leaks that could lead to fires.

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