Ford Motor Company (NYSE:F) announced a recall of nearly 1.1 million vehicles in the United States due to a software issue that may prevent rearview cameras from displaying images properly, increasing crash risk. The recall affects multiple popular models spanning 2021-2024 model years and comes amid ongoing regulatory scrutiny of Ford’s recall practices.
Massive Recall Affects Popular Ford Models
Ford Motor Company is recalling nearly 1.1 million vehicles in the United States due to a software issue that may cause rearview cameras to malfunction, potentially increasing the risk of crashes. The recall, announced Wednesday in a filing with the National Highway Traffic Safety Administration (NHTSA), affects a broad range of Ford’s most popular vehicles across multiple model years.
The recall covers 2021 through 2024 model year Bronco, F-150, and Edge vehicles, along with 2023-2024 Escape, Corsair, F-250, F-350, F-450, F-550, and F-600 models. Additional affected vehicles include the 2022-2024 Expedition, 2022-2025 Transit, 2021-2023 Mach-E, Lincoln Nautilus, 2024 Ranger and Mustang, and the 2022-2024 Navigator (ELI:NVGR). This extensive list represents some of Ford’s highest-volume and most profitable vehicle lines.
According to NHTSA, the software issue may cause the rearview camera image to delay, freeze, or not display at all. Ford has acknowledged awareness of one allegation of a minor crash resulting in property damage tied to the issue, though the company has not disclosed the full extent of incidents related to the camera failures.
The recall stems from an investigation that began in January when NHTSA contacted Ford regarding allegations of more than three dozen rearview camera complaints specifically related to 2021-2023 Ford F-150 vehicles.
By April, Ford’s engineering team was able to reproduce the failure mode within a vehicle and link the causal factors to specific software variants, leading to the comprehensive recall announcement.
Software (ETR:SOWGn) Solution and Regulatory Background
Ford plans to address the issue through over-the-air software updates that dealers will implement to fix the affected vehicles. The problematic software serves as an operating system for the car’s dashboard, helping control the infotainment system’s apps and display functions, including maps and camera feeds. This approach represents a modern solution that can be deployed remotely without requiring physical visits to dealerships for many customers.
Letters notifying vehicle owners of the safety risk are expected to be mailed by June 16, with a second letter to follow once the remedy becomes available later this year. The timeline suggests Ford is working to develop and test the software fix thoroughly before widespread deployment to prevent additional issues.
This recall adds to Ford’s recent history of rearview camera problems. In April, the company issued two other recalls in the United States for rearview camera issues covering approximately 289,000 vehicles in total. Unlike the current software-based solution, those recalls required physical replacement of rearview cameras, indicating the varied nature of Ford’s camera-related quality issues.
The recall occurs against a backdrop of increased regulatory scrutiny. In November, NHTSA imposed a $165 million civil penalty on Ford after an agency investigation found the automaker failed to recall vehicles with defective rearview cameras in a timely manner.
This penalty followed a 2021 NHTSA investigation that began after Ford recalled about 620,000 vehicles in 2020 for rear camera issues, with the agency questioning whether Ford made the recall in a timely fashion. Ford subsequently expanded that recall in 2022 and March 2025, adding approximately 24,000 additional vehicles.
Financial and Operational Impact
The recall represents a significant operational and financial challenge for Ford, affecting nearly 1.1 million vehicles across its most important product lines.
While the company has not disclosed the total cost of the recall, the scale suggests substantial expenses related to software development, testing, deployment, and potential warranty claims. The over-the-air update approach may help minimize dealer labor costs compared to physical component replacements, but the development and validation of software fixes for such a large population requires significant engineering resources.
The recall’s impact extends beyond immediate costs to potential long-term brand reputation effects, particularly given Ford’s recent regulatory penalties and ongoing camera-related quality issues. The F-150, one of Ford’s most profitable and strategically important vehicles, features prominently in the recall, potentially affecting consumer confidence in the company’s flagship truck line.
Ford’s ability to resolve the issue through software updates demonstrates the double-edged nature of modern automotive technology. While software-defined vehicles enable remote fixes that would previously require costly physical recalls, they also introduce new categories of potential failures that can affect large vehicle populations simultaneously.
Ford’s Stock Dips Following Recall Announcement
Ford stock declined following the recall announcement, trading at $10.18, down $0.13 (-1.26%) as of 11:32 AM EDT on May 28, 2025. The stock showed weakness throughout the trading session with a daily range between $10.17 and $10.34, reflecting investor concerns about the recall’s financial and reputational impact.
Despite the daily decline, Ford maintains a market capitalization of $40.461 billion and has demonstrated resilience year-to-date with a 7.69% gain, outperforming the S&P 500’s 0.40% return over the same period. However, the stock has struggled over longer periods, declining 6.04% over the past year while the broader market gained 11.29%, highlighting ongoing investor skepticism about Ford’s long-term prospects.
Ford’s financial metrics reflect both challenges and strengths, with a trailing P/E ratio of 8.25 and forward P/E of 8.38, indicating relatively modest valuation compared to growth-oriented competitors. The company maintains $26.99 billion in total cash, providing financial flexibility to manage recall costs and invest in future technologies. However, Ford’s debt-to-equity ratio of 353.30% reflects significant leverage that could constrain financial flexibility during challenging periods.
Analyst sentiment remains mixed, with price targets ranging from $8.00 to $16.00, averaging $10.31, which closely aligns with current trading levels. The recall announcement may prompt some analysts to reassess their quality and execution assumptions, potentially affecting near-term price targets.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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