If the news of recalls at legacy automaker Ford (F) is starting to get a bit tiresome, then you are seeing perhaps the biggest problem in its full bloom. Another recall landed at Ford, though this one might be an easy fix. The news meant little to shareholders, who gave Ford a hefty 3.5% boost in Wednesday afternoon’s trading.
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The latest recall is on the rear-view camera, reports note. A software defect in the camera can cause it to fail, which increases the risk of a vehicle crash, and potentially, injury from there. Anyone who has used a rear-view camera recently, and knows what it is like to drive without one—particularly in a crowded parking lot—knows what kind of utility such a camera can offer. Ford noted that the camera could malfunction in one of two ways: the camera could display a blank image outright, or the last image might remain on the display even after backing up is complete.
The fix for such a problem should be simple, however. Dealerships will update the camera’s software with the appropriate fix, once available. Those whose vehicles are impacted will receive notice in a practice that Ford has had a lot of opportunity to perfect these days.
Switching Lanes
Meanwhile, BlueCruise—Ford’s Level 2 hands-free driving system—is getting an update as well, and delivering some noteworthy new features. The new system can actually perform automated lane changes, which allows it to pass slower-moving vehicles and also get out of the way of faster-moving vehicles coming up from behind. There are some revisions to the user interface set to come in as well, which will offer up reasons why BlueCruise made the moves it did. For instance, it can notify a driver why hands-free driving was shut down.
There is, unfortunately, bad news that goes along with this. The new version of BlueCruise, version 1.5, features upgraded Advanced Driver Assistance (ADAS) hardware. Thus, users of older BlueCruise systems will not be able to get the update as their hardware will prove incompatible.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 12 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After an 11.81% loss in its share price over the past year, the average F price target of $9.71 per share implies 17.33% downside risk.
