Ford Motor Company (NYSE:F) has successfully received a tax incentive approval, worth $25 million, from the Kentucky Development Finance Authority. The company has two assembly plants in the region, where it manufactures heavy duty trucks and Lincoln vehicles. Most of the incentives are tied to the recent expansion activities that the company has planned for the two plants. The incentives are a part of an agreement between the company and the Authority, to increase the number of jobs in the region.
Unfortunately, not all is going well for Ford, as the company has announced two recalls, comprising of an estimated 55,200 vehicles. This includes Ford’s transit wagons of the model year 2015-16. The rear seatbelts of these cars tend to damage easily, when something heavy is placed on them, creating future safety risks.
The second vehicle to be affected is the Ford F-150 truck, model 2016. The trucks had been equipped with multi-contour seats. Unfortunately, the classification system is found to identify an adult as a child in some cases, thereby compromising airbag safety in case of accidents. All of the vehicles are in use in North America. However, no hazard incident caused due to the two problems has been reported as yet.
Regarding the incentives provided by the Finance Authority, Ford has announced that it plans to use the money on revamping the 2017 F-Series, through the creation of a new body shop and retooling. In a statement from the company, Ford appreciated the help of the commonwealth, for supporting its investments in Kentucky. The company also clarified that it had been doing business from the facilities for over a century. Ford also stated that vehicles produced at the two facilities are being used in the US and other countries. The company also assured that it would keep working to ensure that the facilities remain competitive for another century.
Ford Motor Company (NYSE:F) closed trading at a share price of $12.4, after having a trade volume of 32.02 million and gaining 2.61% during the February 25 session.