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Ford and Lincoln recall about 170,000 vehicles over defective rear-view camera

Ford and Lincoln have jointly issued a safety recall that includes nearly 170,000 vans and SUVs built between the 2018 and 2023 model years. The vehicles included in the campaign are equipped with a rear-view camera whose image can cut out while the driver is backing up. Assigned recall number 23V-598 by the National Highway Traffic Safety Administration (NHTSA), the campaign includes the following cars: 7,649 units of the 2020-2023 Aviator fitted with the standard rear-view camera and built from October 19, 2019, to August 17, 2023. 70,600 units of the 2018-2021 Navigator fitted with the 360-degree camera and built from March 16, 2017, to December 23, 2021. 66,740 units of the 2022-2023 Transit fitted with either camera system and built from February 26, 2021, to August 17, 2023. 24,468 units of the 2021 Bronco fitted with the 360-degree camera and built from September 23, 2020, to December 22, 2021. Ford explains that the defect is present in all of the 169,277 vehicles included in the campaign. While these are different cars equipped with different technology, they all suffer from the same problem. The company explains that "customers may intermittently experience either a rear camera blue image or a full blue or black image on the SYNC [infotainment system] screen when the vehicle is placed in reverse, or when the 360-degree view is selected and available." It adds that losing the camera's image while backing up increases the risk of the crash. The cause of the problem varies from model to model. Ford has narrowed it down to the camera hardware, the wiring retention, and the Image Processing Module - V (IPMB) software. It adds that "fretting corrosion causes tin oxide formation on the internal camera connector due to [a] thermally-induced micro-movement between the tin-plated contact surfaces," and that the rate of tin oxide accumulation depends on factors such as the temperature and the humidity. It has also traced some of these issues to a problem during the manufacturing process. Ford will begin notifying owners of affected vehicles by mail on October 2. When parts are available, owners will be asked to bring their van or SUV to an authorized dealer so that a technician can replace the rear-view camera. Transit models included in the campaign will also receive a software update. Owners who have already paid to fix the problem can claim a reimbursement until June 30, 2024. This isn't Ford's first rear-view camera-related recall.

Ford 2Q profit drops 86% as it restructures overseas

DEARBORN, Mich. (AP) — Ford's net profit tumbled 86% in the second quarter due largely to restructuring costs in Europe and South America. Net income for the April-through-June period dropped to $148 million, or 4 cents per share. Without the charges the company made 28 cents per share. Revenue was flat at $38.9 billion. On average, analysts surveyed by FactSet expected earnings 31 cents per share on revenue of $38.49 billion. Chief Financial Officer Tim Stone says the company had charges of $1.2 billion as it moved to close factories in Europe and South America. He says Ford already is seeing an impact from its global fitness measures that included a reduction of 7,000 white-collar workers. Ford, which released numbers after the markets closed Wednesday, says its results include a $181 million valuation loss on an investment in a software company, trimming 4 cents off adjusted earnings per share. Its stock fell 6.3% in after-hours trading to $9.68. Stone said Ford is in the early stages of its restructuring, but already is seeing improvement in some regions. Free cash flow also improved by 80% to $2.1 billion in the first half of the year, he said. "We're already starting to see some early benefits," he said. "A lot of work to do." The company expects improvement in the second half of the year as more new big SUVs hit dealerships and more of the restructuring takes hold. Ford on Wednesday forecast pretax adjusted earnings of $7 billion to $7.5 billion for all of 2019, compared with $7 billion last year. The company previously had only said that pretax earnings would improve. Full-year adjusted earnings per share are forecast to be $1.20 to $1.35, up from $1.30 in 2018. Previously it did not give per-share guidance. Ford's U.S. sales fell nearly 5% in the second quarter, according to the Edmunds.com auto pricing site, as the company exited most of its passenger car business. But Stone said sales of the new Ford Ranger small pickup offset much of that as its share of the small truck segment rose 14%. Edmunds, which provides content for The Associated Press, said Ford's average vehicle sale price rose 2.8% to $41,328 during the quarter. In North America, Ford's biggest profit center, pretax earnings fell 3% to just under $1.7 billion, which the company blamed on switching its Chicago factory to build new versions of midsize SUVs.

Lincoln Zephyr for China puts brand back in the sedan game

Lincoln abandoned the sedan segment in the United States, but its Chinese division isn't ready to pivot toward a range made up exclusively of high-riding models. It has introduced a sedan named Zephyr at the Guangzhou Auto Show that was developed solely for China and will be manufactured locally. If the name sounds familiar, you're either well-versed in the history of American luxury cars or you've been keeping up with the news lately. Lincoln's original Zephyr was a stately, V12-powered model available in several different body styles and sold between 1936 and 1942. More recently, the nameplate appeared on a thinly-veiled concept introduced in Shanghai as a preview of the production-bound model. Unsurprisingly, the sedan has changed little in its transition from a design study to a series-produced car. It gained bigger and more realistic-looking headlights and a redesigned front end, and it grew a pair of conventional door mirrors (the concept was fitted with cameras). Out back, the bumper gets a new look and the lighting elements have changed, though the light bar is still oddly reminiscent of the Audi A7. What hasn't been tweaked are the Zephyr's proportions: It's sleek, fastback-like, and one of Lincoln's best-looking modern sedans. "Every detail from the inside out is crafted based on a deep understanding of our young Chinese clients," said Mao Jingbo, president of Lincoln's Chinese division. This is an interesting statement; Lincoln is targeting a clientele that, on our side of the Pacific, isn't typically found inside of one of its showrooms or seen behind the wheel of a sedan. To that end, the interior gains a tremendous amount of technology including a 12.3-inch digital instrument cluster and a 27-inch touchscreen that takes up the entire dashboard. We know that the Zephyr offers Lincoln's largest puddle lights (which are referred to as a Welcome Mat), four Relaxing Modes, several "digital scents," and a 128-color ambient lighting system. What we don't know much about is what's under the hood: The only specifications released by the firm outlines a 2.0-liter engine, presumably a four-cylinder, that's bolted to an eight-speed automatic transmission. Lincoln will begin selling the Zephyr on the Chinese market in the first quarter of 2022. The sedan will be built in China as well, which is a first that the company is proud of. And nothing suggests it will be sold outside of its home market — let alone in the United States.