Ford Motor Co., which leads all automakers in the number of recalls it has issued this year, put out a new recall this week and said the company will take a $570 million charge to its second-quarter earnings because of it.

The Dearborn-based automaker is recalling 694,271 SUVs in the United States and its territories due to a problem with fuel leaks that could heighten the risk of the vehicle catching on fire, the National Highway Traffic Safety Administration said in a July 14 filing, following a yearlong investigation. In the United States alone, the recall affects about 687,000 vehicles, Ford spokesman Mike Levine said.

In the United States, the recall covers certain 2021–24 model year Bronco Sport and 2020–22 model year Escape SUVs with 1.5-liter engines. The NHTSA estimates that 0.3% of recalled vehicles may have the defect.

According to the NHTSA filing, fuel injectors in the impacted vehicles may crack, causing fuel to leak into the engine compartment and possibly ignite. It said vehicle occupants may notice a strong fuel smell inside or outside the vehicle, instrument panel warnings, smoke, or visible flames.

Levine said the automaker is not aware of any injuries related to this issue. He added that about 858,000 2021-24 Bronco Sport, 2020-22 Escape and 2019-24 Kuga vehicles globally, that includes the United States and its territories, are part of the recall.

Ford's struggle with quality

Ford primarily builds its Escape at its Louisville Assembly Plant in Louisville, Kentucky. It builds the Bronco Sport in its plant in Hermosillo, Sonora, Mexico.

This is Ford's 88th vehicle recall filed with the NHTSA since January of this year, topping all other automakers in the number of recalls filed. Ford has struggled with its quality for the past several years, in fact, it has been near the top or led in recall filings since 2020, according to NHTSA data.

When Jim Farley was appointed as Ford CEO in October 2020, he listed fixing quality and lowering warranty costs as a top priority. So far, he has paid for not achieving it. His compensation fell by $1.6 million to $24.9 million in 2024 compared with 2023 because he failed to hit company-set quality improvement targets.

Meanwhile, in November 2024, Ford agreed to pay the second highest civil penality in the NHTSA history as part of a three-year consent order. The fine is up to $165 million, topped only by the Takata air bag consent order. A NHTSA investigation that started in 2021 found that Ford did not recall vehicles with defective rearview cameras in a timely manner. It also said Ford failed to give accurate and complete recall information in line with the National Traffic and Motor Vehicle Safety Act requirements.

Some safety advocates say the consent order, which requires Ford to meet various safety mandates, is partly driving the number of Ford recalls higher in recent months. The NHTSA can impose civil penalties for violation of federal safety laws — Volvo, for example, agreed in 2023 to pay $65 million for problems related to recalls. But such large fines against carmakers have been generally rare.

Jim Farley, president and chief executive officer of Ford, talks with the media after Ford kicks off the 2025 Detroit Auto Show with a reveal at Huntington Place in Detroit, Thursday, Jan. 9, 2025.

In a government filing on July 16, Ford said of the latest recall: "We estimate the aggregate cost of the action, based on the remedy options we are evaluating, to be about $570 million and will be reflected in our second quarter 2025 results."

Ford is expected to report its second-quarter earnings after the market closes on July 30. Many analysts expect Ford to report earnings lower than the year-ago period. Dan Ives, managing director and senior equities analyst at Wedbush Securities called the July 16 recall, "another headwind for Ford and speaks to the constant challenges ahead."

Ford said in its government filing, "Consistent with our corporate policy, which considers the magnitude of individual field service actions, the expense will be treated as a special item. Accordingly, it will not impact our total Company adjusted (earnings before interest and taxes), adjusted earnings per share, or adjusted free cash flow."

Eight vehicles had underhood fires

"After reassessment, Ford reported this month that it found cracked fuel injectors in eight vehicles that experienced underhood fires, despite having undergone repairs," according to Reuters. "Six of these vehicles did not have the updated engine software the company previously recommended."

According to NHTSA's report, Italy-based Dumarey Flowmotion Technologies supplied the fuel injectors in the 687,000 vehicles being recalled.

In a statement to the Detroit Free Press, Ford's Levine said the automaker is not aware of any injuries from "underhood fires related to cracked fuel injectors." He confirmed that Ford had two earlier recalls for similar issues and this new recall supersedes the prior recalls.

"This safety recall ... will include a new remedy for this issue, which is currently under development and expects to be finalized in the near future," Levine told the Free Press. "The recall includes an interim software update, which will help detect cracked injectors and mitigate fire risk."

He said the automaker is recalling an additional number of vehicles produced with these injectors that were not previously recalled, Levine said. That's because those are the vehicles that might result in a leak that produces the fuel smell and cause "drivability symptoms, instrument cluster warnings, or smoke and flames emanating from the engine compartment or underbody."

The NHTSA filing said dealers will update the engine control software free of charge until a mechanical repair is determined.

Letters notifying owners of the safety risk are expected to be mailed Aug. 18 and second letters will be sent once the remedy is available. In the meantime, vehicle owners may contact Ford customer service at 866-436-7332 and provide Ford recall number 25S76 for more information.

(This story has been updated to include new information.)

Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at [email protected]. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber

(This story was updated to add a photo gallery.)

This article originally appeared on Detroit Free Press: Ford to recall 687,000 SUVs in U.S. for possible engine fires, will cost it $570 million