Ford is recalling 3 million vehicles for airbags for $ 610 million

WASHINGTON (Reuters) – Ford Motor Co said Thursday it will recall 3 million vehicles for inflating airbags that could rupture at a cost of $ 610 million.

The National Highway Traffic Safety Administration on Tuesday ordered Ford to issue the recall for driver-side airbag inflators, rejecting the automaker’s 2017 petition to avoid it.

The defect, which in rare cases leads to the rupture of airbag inflators and the flying of potentially lethal metal fragments, sparked the largest recall in U.S. history of more than 67 million inflators. Globally, about 100 million inflators installed by 19 major car manufacturers have been recalled.

The recall involves 2.7 million US vehicles. Ford will include the costs in its fourth quarter results.

The vehicles had previously been recalled for passenger side inflators. “We believe that our extensive data has shown that a recall was not warranted for the driver’s side airbag. However, we respect the NHTSA’s decision and will file a recall, ”said Ford.

The NHTSA also demanded that Mazda Motor Corp. recall 5,800 B-series airbag inflators from 2007-2009.

Takata inflators have resulted in at least 400 injuries and 27 deaths worldwide – including 18 US fatalities with two in previously recalled 2006 Ford Ranger trucks.

The Ford vehicles being recalled include several Ranger, Fusion, Edge, Lincoln Zephyr / MKZ, Mercury Milan, and Lincoln MKX vehicles from 2006-2012 model year.

In November, the NHTSA rejected a petition filed by General Motors Co to prevent the recall of 5.9 million US vehicles with Takata airbags. GM said the recall involved 7 million vehicles worldwide and would cost $ 1.2 billion.

Ford disclosed separately on Thursday and expects to record a $ 1.5 billion pre-tax revaluation loss in the fourth quarter related to retirement and other post-employment benefit plans driven by lower discount rates.

Ford said the revaluation loss is expected to reduce net income by approximately $ 1.2 billion, but has not changed expectations for 2021 retirement contributions.

Reporting by David Shepardson in Washington; Editing by Leslie Adler and Matthew Lewis

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