Ford announces $570 million field service action for certain vehicles

Ford Motor Company (NYSE:F), the $46 billion automotive giant currently trading at an attractive P/E ratio of 9.2, announced Wednesday a field service action related to fuel injectors in select vehicles, according to a statement filed with the Securities and Exchange Commission. The action affects certain model year 2021-2024 Bronco Sport vehicles, 2020-2022 Escape vehicles, and 2019-2024 Kuga vehicles.

The company estimates the total cost of the action to be approximately $570 million, based on the remedy options under evaluation. Ford stated that this expense will be reflected in its second quarter 2025 results, with the next earnings report scheduled for July 30, 2025.

Consistent with Ford’s corporate policy, the expense related to this field service action will be treated as a special item. The company reported that this treatment means the expense will not impact its total adjusted EBIT, adjusted earnings per share, or adjusted free cash flow.

The information is based on a press release statement contained in Ford’s SEC filing.

In other recent news, Ford Motor Company reported a robust second quarter with sales increasing by 14.2% to 612,095 vehicles, surpassing the estimated industry growth of 1.4%. This growth expanded Ford’s market share to an estimated 14.3%. Meanwhile, Ford’s $3 billion electric vehicle battery plant in Michigan is expected to qualify for production tax credits, a development following revisions to tax legislation. Additionally, Ford is recalling 850,318 vehicles in the U.S. due to a potential defect in the low-pressure fuel pump, as announced by the U.S. National Highway Traffic Safety Administration. The recall aims to address the issue to prevent possible engine stalls.

Moreover, Ford is requiring most of its salaried employees to work from the office four days per week starting September 1, as part of a strategy to boost productivity through in-person collaboration. In another development, China has granted temporary export licenses to rare-earth suppliers for Ford and other major U.S. automakers, addressing supply chain disruptions due to export restrictions. Ford declined to comment on this matter. These recent developments highlight significant operational and strategic changes at Ford.

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