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Automobile industry

Ford Recalls 1995 Ford Contour and Mercury Mystique Sedans for Second Time Due to Fuel Leakage Concerns

Strategic Insights

— 1 min read

Ford Motor Co. has recalled its new 1995 Ford Contour and Mercury Mystique sedans for the second time in a month, this time due to 14 reports of leakage from a plastic fuel tank reinforcement pipe. The company will install new fuel tank assemblies in about 28,500 cars, with 7,400 already delivered to U.S. customers and 450 in Canada. Ford has halted production of the cars for a week to accommodate the repair and expects to resume production at its Kansas City, Mo., plant on October 24, resulting in a lost revenue of $100 million.

Key Takeaways:

  • Ford has recalled 28,500 Contour and Mystique sedans due to 14 reports of leakage from a plastic fuel tank reinforcement pipe.
  • The recall is the second in a month, with the previous one involving a potential buildup of static electricity that could ignite gasoline vapors during refueling.
  • Ford will install new fuel tank assemblies on the affected cars, with 7,400 already delivered to U.S. customers and 450 in Canada.
  • Production of the cars has been halted for a week, resulting in a loss of 6,400 vehicles this week.
  • Ford expects to resume production at its Kansas City, Mo., plant on October 24.
  • The recall is part of Ford's $6 billion "world car" program, which began production of U.S. versions of the car in July.
  • Ford has changed its production processes to correct the fuel leakage problem, but the revised fuel tank assemblies are in short supply.
  • The recall involves a part manufactured by an outside supplier, which has a plastic weld on the fuel filler reinforcement pipe that is not sufficiently strong.

Statistics:

  • 28,500: The number of Contour and Mystique sedans recalled by Ford.
  • 7,400: The number of cars already delivered to U.S. customers.
  • 450: The number of cars delivered to Canada.
  • 6,400: The number of vehicles lost due to halted production.
  • $100 million: The lost revenue due to production halt.
  • $6 billion: The cost of Ford's "world car" program.

Sources:

  • Reuters News Agency, Detroit MI (no date specified)

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