Supplier to blame for Escape engine recall?
The recall was announced last week, with Ford asking owners to park their vehicles because of the threat of engine fires posed by the leaky fuel lines. Yesterday it became known that Ford would be reimbursing dealers an extra $300 per customer vehicle serviced under the recall.
Ford's desire to expediently wrap up the recall and its negative publicity will surely cost the automaker, but not nearly as much as we had previously estimated. According to the report, Ford has sold 4,800 of the 11,500 Escape crossovers covered in the recall, vehicles that were built between October 8, 2011 and July 11, 2012. That means the additional $300 payments would cost the automaker $1.44 million.
TI Automotive continues to provide fuel lines for the Escape, according to Reuters, and has fixed the manufacturing problem.
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