DETROIT _ Ford on Thursday dropped its 2016 profit forecast by $600 million after expanding an existing door latch recall to 1.5 million additional vehicles.
"We now expect our 2016 total company adjusted pretax profit to be about $10.2 billion," the automaker disclosed in a filing with the Securities and Exchange Commission. Previously, Ford told investors it expected pretax profits of $10.8 billion for the full year.
The filing also estimated the cost of the expanded recall at $640 million, which will reduce Ford's third-quarter earnings.
"We continue to expect our total company adjusted pretax profit in the third quarter of 2016 to be about 10 percent of our full-year 2016 results," the filing stated.
The initial recall, issued in early August, covered 2013 through 2015 model C-Max and Escape vehicles; 2012 through 2015 Focuses; 2014 through 2016 Transit Connects, and 2015 models of the Lincoln MKC and the Mustang.
Now the recall covers nearly 2.4 million vehicles in North America. More specifically, it covers 2 million in the U.S., 233,034 in Canada and 61,363 in Mexico.
The recall was issued because the pawl spring tab in the vehicle's side door latch could break, which could prevent the door from closing.
Dealers will replace side door latches at no cost.
Owners who want to know if their vehicle is included in the recall can go to www.ford.com, click on safety recalls tab and then enter their vehicle identification number.
