Ford Warns Investors: $2.1 Billion in Charges Are Coming
Ford Motor Company (NYSE: F) warned investors that it plans to take one-time charges of over $2 billion against its fourth-quarter earnings, the result of a recall and an accounting issue related to its pension funds.
Ford said in a regulatory filing on Thursday that a recall of about 2.7 million vehicles made between 2006 and 2012, to replace defective airbag inflators made by Japanese supplier Takata, will result in a charge of about $610 million against its fourth-quarter earnings.
About 67 million vehicles worldwide have been recalled to replace airbag inflators made by Takata, which can explode without warning. The Takata inflators in the Fords affected by this recall are a different design from those recalled over the last decade, which are blamed for numerous deaths and injuries. But regulators have asked automakers to replace them on concerns that they may not function properly when the airbags are deployed.
Source Fool.com
