Why Ford's Latest Recall Is Crucial

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Today, we'll discuss Ford's massive recall and whether we should read between the lines. 

Also, we're adding new features to our newsletter, such as more news and analysis. We hope you like them!

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Key Takeaways

Don’t have much time? Here’s the summary of what we’re talking about:

• Ford is recalling half a million F-150 trucks over a transmission issue

• The Supreme Court has ruled in favor of more relaxed regulations

• A hack could severely impact car sales

• We look at the best years to buy a used BMW X3

• We analyze the best rock sliders for the fifth-generation Toyota 4Runner

KERN’S CORNER

Why Ford's Latest Recall Is Crucial

If you visit fan-favorite websites such as JD Power and Kelley Blue Book, you'll realize one thing: most people love the 2014 Ford F-150. 

It's got a commanding 84/100 rating on JD Power, making it one of the best-rated full-size trucks of its generation. 

Owners at KBB give it 4.5/5 and love its versatility.

Not only that, but the 2014 F-150 also ranks low in the complaints department on sites such as Car Complaints. 

Overall, the 2014 F-150 has a lot going for it until a few days ago. 

Ford announced that it would recall more than half a million F-150s from 2014, and the issues were more than alarming. These trucks are prone to dropping into first gear, regardless of how fast they are going. 

As terrifying as this sounds, the recall is only one of the problems plaguing Ford. Moreover, Ford's current challenges might be too much to handle. 

What was the F-150 recall? 

On June 27, 2024, Ford announced that it was recalling 552,188 F-150 trucks from 2014 

Ford recognized that the vehicles: "may experience an intermittent loss of the Transmission Output Shaft Speed (OSS) sensor signal to the Power Control Module (PCM), potentially resulting in a temporary, unintended downshift into first gear."

There's no denying the possible outcomes of such a situation. The risk of a crash is extremely high, and, unfortunately for some drivers, it has been a reality. 52 drivers claimed that their rear wheels locked up; others lost control of their cars, and two were injured. 

All the affected vehicles belong to lots produced between June and December 2014, and all have a 6-speed automatic transmission. 

So, if you've got the two-valve 4.6L V8, you're basically home-free, as this was the only model with the 4-speed 4R75E transmission. 

The F-150 might be the best-selling truck in the US, but the company faces serious quality challenges, and they aren't new. 

Not only that but as regulations tighten, recalls will increase. In fact it's already happening, as recalls grew 46% from 2012 to 2022. 

The problem is that, as you'll see, recalls are complex issues. They're not black and white, and understanding what they mean sometimes takes a lot of work. 

Car companies often will face massive recalls for minor issues, as the NHTSA has to cover the entire spectrum of possible failures. However, in Ford's case, things are very different. 

Recalls plague Ford.

The following table shows how many Ford vehicles were recalled in 2024. 

Q2 was highly active and for all the wrong reasons. The company is on pace to break its previous record for most recalls in a year. 

The problem is that these recalls affect three of Ford's most popular vehicles. 

The Maverick, Ford's return to the small-truck segment, has faced considerable quality issues, ranging from faulty modules that turn off lights to a loss of battery power during driving. 

The Bronco Sport can suffer a sudden low battery charge, rendering the vehicle powerless, even in motion. Then, there's the 2014 F-150 and the recall we've just mentioned. 

This isn't new to Ford.

The following chart shows the automakers leading the market in recalls per year. 

Ford has consistently ranked on top, and so far, in 2024, it's second overall.  

So, should we be concerned? 

Ford's challenges aren't new

The only reason why Ford didn't rank number one in recalls in 2023 is because Honda had a really rough time with its Takata airbags. 

By the way, if you want us to dive deep into Takata, drop us an email.

The problem is that, for Ford, these recalls might keep happening at alarming numbers. 

Ford's CEO, Jim Farley, openly recognized that he had taken too long to address these issues. 

At the 2024 Wolfe Conference, he said that, in fact, he almost regrets it. By the way, his quotes on the issue are fascinating, and you can read them in this link. 

Even Farley recognizes that these quality issues will take years to solve, something he had already addressed in 2022. 

Ford's future is challenging, but it always helps to view things through as objective a lens as possible. 

How to view recall data

Here's a quick pop quiz: name one of the least recalled brands in the US. 

Chances are you thought of Toyota, Hyundai and others. You'd be partially right with Lexus, but I bet you didn't think of the Mercedes Benz CLA. 

Yet, it ranks amongst the lowest recalled vehicles, even though its quality is subpar.  According to sites such as Consumer Reports and Car Complaints, this Mercedes has worrisome issues, including blown engines. 

However, the site Car Complaints summarizes it perfectly: it's either very good, or there aren't many of them out there. 

With that said, let's return to the 2014 Ford F-150 and what this recall could mean for America's best-selling truck. 

There were a total of 753,851 F-150 trucks sold in the US that year. That's not considering those sold in Canada, Mexico, and other markets. 

This was a successful year for the F-150, no doubt, as sales were increasing. 

So, if you were to compare the amount of recalled F-150s (more than half a million) to the total produced, you'd justifiably freak out. But let's remember that a recall doesn't necessarily mean that all those F-150s are death traps. 

Ford has received 300 warranty reports and 96 field reports, plus 124 complaints. 

If we assume that these belong to individual vehicles and that each is a separate incident, this would equal less than 500 cases. 

We're not saying we should be less concerned. Instead, it shows that Ford is reacting to these reports before it gets out of hand. 

However, this highlights an interesting phenomenon. 

A reason why there are so many F-150 recalls is because there are so many of them out there.  

However, let's not absolve the F-150 of its wrongdoings. 

According to iSeeCars, the Ford F-150 has many recalls, averaging 5.5 times the industry median, but the Ram 1500, for example, averages 6.1X.

Plus, we don't know how many of these recalls are critical. 

Recalls might remind us of that one kid in class who'd always tattletale, but there's a priceless value to them. They get companies to respond. 

What Ford is doing right now is being cautious, and this isn't us playing Devil's Advocate. 

Otherwise, we wouldn't have covered it because "Ford will fix it." 

No, it's important to highlight these issues. 

That's not to say that Ford hasn't taken a hit in sales. 

The following chart shows how sales have behaved. While the F-150 might still be America's best-selling truck, it might not be for long. 

It still ranks high in magazines such as Consumer Reports (though it did drop in iSeeCars). Indeed, these are interesting times at Ford. 

If you want to fiddle with NHTSA data, here’s the database.

BEST AND WORST

What are the best and worst years for the BMW X3?

The BMW X3 is an attractive SUV for speed, comfort, and luxury. However, BMW also has a reputation for unreliability.

So, does this mean that no used X3 is worth it?

However, you must always have a clinical eye and know what to look for.

In this article, we're covering both whether buying a used BMW X3 is worth it and the best years if you're doing so.

IN THE KNOW

How one hack impacted thousands of dealerships

Here's something you might not know about car dealerships in the US. Thousands of them use software from CDK Global.

A unified system is excellent for dealerships and automakers but also represents a massive risk. With so much data, such a system becomes a tempting target, and CDK Global becomes the latest victim.  

Last week, CDK was hacked, and thousands of dealerships went offline. The company is racing to recover the system and might have to pay a ransom for the data, but the impact on dealerships is massive. Not only that, but the attacks come at a critical time.

This Supreme Court ruling could change cars forever

This case seems like a lot of legal jargon from the outside, but the consequences could be massive in the automotive industry. To understand what we're talking about, we need to go back to 1984. 

That year, the Supreme Court then ruled on a case that pitted the Natural Resources Defense Council and Chevron against each other. The result was that courts should turn to federal agencies such as the EPA for legal interpretations.

Now, Chief Justice John Roberts ruled that courts must exercise their independent judgment. Now, companies can challenge regulations not laid out by Congress, and much more

TIPS AND KNOW-HOW

What are the best rock sliders for the Toyota 4Runner?

There's no denying that the fifth-generation Toyota 4Runner is at home offroading. If this is your case, you want the most protection for your car. 

The Toyota 4Runner is reliable and durable, but its underbelly can be vulnerable, especially if you're putting it through challenging terrain.

A critical upgrade you can do is add rock sliders, but which one is the best? Our article discusses the five best rock sliders for the Toyota 4Runner.

NEWSBITES

Every week, we scour the web for the most essential news. Here’s what you need to know this week:

• Car industry warns EU not to back out of EV plans

• American cars take top positions at JD Power rankings

• Uber will give LA drivers $1,000 to ditch their cars. Here's the catch