What's the Reason for Ford's Recall of Almost 413,000 Explorer Vehicles?

Ford Announces Major Explorer SUV Recall

Ford Motor Company has issued a recall for 412,774 Explorer SUVs across the United States. The recall stems from a defect in the rear toe link, which could break and result in loss of steering, increasing the risk of accidents.

This recall targets specific Explorer models manufactured between 2017 and 2019. According to guidance from the National Highway Traffic Safety Administration (NHTSA), dealerships will replace the problematic toe links free of charge for affected owners.

Ford has identified two incidents worldwide where vehicles collided with barriers or guardrails following toe link failures, though no injuries have been reported so far.

Separately, Ford is recalling another 40,655 vehicles in the U.S. due to issues with batteries and brake pedals, both of which could contribute to crash risks.

Last year, Ford led all U.S. automakers in recalls, issuing over 100 notices. In January, the company recalled more than 116,000 vehicles—including models produced at Kentucky facilities—because of fire hazards linked to faulty engine block heaters. The recall included Ford Escape (2013-2019), Ford Focus (2013-2018), and Lincoln MKC (2015-2016) models.

Currently, Ford holds a Zacks Rank #1 (Strong Buy).

Recent Recalls from Other Automakers

In January, Rivian Automotive, Inc., an electric vehicle manufacturer based in California, recalled 19,641 R1 series vehicles that had previously undergone rear suspension repairs. The NHTSA reported that improper reassembly during prior service may have compromised the rear suspension toe link joint. This recall covers select R1 models from 2022 to 2025, including 7,031 R1S SUVs and 12,610 R1T pickups, all serviced between April 1, 2022, and March 10, 2025.

General Motors Company recently recalled over 43,000 Chevrolet, GMC, and Cadillac vehicles. The recall was prompted by a transmission control valve defect that could cause the rear wheels to lock, increasing the risk of accidents.

Ford’s Stock Performance and Valuation

Over the past six months, Ford's stock has lagged behind the Zacks Automotive-Domestic sector, with shares rising 19.9% compared to the sector's 22.8% growth.

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From a valuation standpoint, Ford appears to be trading at a discount. Its forward price-to-sales ratio stands at 0.32, notably lower than the industry average of 3.34.

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Analyst estimates for Ford’s earnings per share (EPS) in 2026 and 2027 have decreased by one cent over the past month. The 2027 EPS estimate also dropped by a penny in the last week.

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• Ford Motor Company (F): Free Stock Analysis Report
• General Motors Company (GM): Free Stock Analysis Report
• Rivian Automotive, Inc. (RIVN): Free Stock Analysis Report