Ford's Latest Backup Camera Recall Will Cost It $270 Million
2023 Ford ExplorerImage: Ford
Ford is issuing yet another recall over its backup cameras, Reuters reports; this time, the recall hits another 169,000 vehicles. It’s going to cost the Blue Oval too, as the company is expecting to take a $270 million hit because of it.
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This latest recall is just another in a line of numerous recalls the company has issued since mid 2021 over faulty backup cameras that can malfunction and not show a feed when activated. Vehicles affected this time around are the Ford Explorer, Bronco and Transit and the Lincoln Aviator, Corsair and Navigator from model years 2018-2023.
In a filing with the SEC, the company said that this recall would cost it nearly $300 million:
Ford said in a filing with the Securities and Exchange Commission that the aggregate cost of replacing the cameras and updating the software was estimated to be about $270 million.
Assuming that a similar price tag can be placed on the other recalls, Ford might be out over a billion dollars since this problem started. The company also admitted to the NHTSA that it has nearly 3,500 warranty reports over the camera failures and luckily just two minor crashes with no injuries because of it.
The recalls seem to be affecting Ford’s bottom line in more ways than one. Ford Authority reports that because of the backup camera issue, Explorer sales dropped 23 percent in Q2 2023 causing the Explorer to give its first place sales spot up to the Toyota Highlander.
