Ford Motor Company (F) Pays $17 Million Fine on Recall

Bottom line
The headlines around the Internet posting Ford Motor Company (NYSE:F)’s massive penalty are striking, but in reality Ford has had fewer recalls than just about all of its competitors. In fact, if you look at the 10 largest recalls this year, both Ford and crosstown rival General Motors Company (NYSE:GM) managed to avoid the list. Chrysler can’t say the same, taking the largest recall by a large margin with its 2.7 million Jeep Grand Cherokees and Liberty models. Toyota also had more than a million vehicles recalled due to faulty airbag issues.

This will be an important development for Ford investors over the next couple of years as multiple vehicles are redesigned and launched – especially regarding the Lincoln luxury line that needs flawless launches to help repair the brand. If Ford Motor Company (NYSE:F) fixes its launch problems and recall issues, it will easily be a more profitable company and investment. The good news is that Ford’s management has a track record of fixing big issues.

Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

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