Ford’s Catastrophic EV Recall

Ford (NYSE: F) recalled almost all the Mustang Mach-Es it ever sold. It was supposed to be one of the two flagships of its EV efforts. It was named after America’s most iconic sports car, the Mustang, which was launched in 1964. Ford already has what is probably the worst warranty record among very large car companies. The extent to which this damages Ford’s image is considerable.

In the case of some Mach-Es there are unexpected 12V battery discharges which can cause the front door electronic latch to stop functioning, This could leave an owner stuck outside or inside the vehicle. Ford is recalling approximately 317,000 Mustang Mach-E models in the US and worldwide as it works to resolve the flaw. The recall effects model years 2021 through 2025. Ford told dealers not to sell any more of them for now.

The letter from the NHTSA read “Ford Motor Company (Ford) is recalling certain 2021-2025 Mustang Mach E vehicles. In the event of a low battery charge, the electronic door latches may remain locked once the driver or front passenger exits and shuts the door, possibly trapping someone who is unable to use the inside door release handles, such as a child in the back seat.”

Ford has been desperate to sell Mach-Es. At one point it was offering 0% APR for 72 months financing. Ford has also offered a home charger with free installation. Ford only sold 4,724 Mach-E’s last month.

Ford continues to have atrocious warranty costs. According to Warranty Week, “In 2024, Ford spent a total of $5.83 billion on warranty claims payments. This was a 22% increase from 2023’s total of $4.78 billion.” There is no reason to think 2025 will be any better. The Mach-E recall is proof that Ford continues to struggle.

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