Wednesday, November 16, 2005

Ford Recalls

http://www.msnbc.msn.com/id/10068776/ [for full article]

WASHINGTON - Ford Motor Co. recalled 220,000 vehicles from the 2005 model year Wednesday amid fire worries from a battery cable rubbing against the frame and concern that a fuel tank strap could separate after tens of thousands of miles.

The recall linked to the cable involves more than 98,000 Ford Crown Victoria, Lincoln Town Car and Mercury Grand Marquis sedans. Ford said in a letter to the National Highway Traffic Safety Administration that it has received four reports of fires.

Ford spokeswoman Kristen Kinley said chafing of the cable caused the exposure of wires to the vehicle frame, causing the frame to become electrified in some cases and carry the potential for heat damage or fires.


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With this huge recall from Ford, one has to question if the company can handle the cost? With gas prices on the fritz and shooting up and down, people aren't looking to buy many trucks or SUVs. Even with the larger sedans, consumers are looking for one thing, cars that can save on gas. Is Ford's opportunity cost of still making this cars and sedans worth it? Can they keep up the high cost of maintaining their operations?

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