Ford Faces Class-Action Lawsuit and Massive Recall Amid Stock Decline

Ford Motor Company (NYSE:F) shares dropped over 1.5% in Tuesday trading as a dual crisis unfolded. A class-action lawsuit filed in Michigan federal court alleges defective F-150 trucks with oil consumption issues, while a separate recall impacts 1.9 million vehicles.

The lawsuit, initiated by 12 plaintiffs on August 28, claims Ford knowingly sold F-150s with engine defects causing abnormal oil consumption. Owners report needing to monitor oil levels far beyond manufacturer recommendations. Ford faces allegations of failing to disclose the defect or provide adequate remedies despite customer complaints.

This legal challenge compounds existing pressures from today's announced recall of 1.9 million vehicles. The twin setbacks highlight ongoing quality control challenges for the legacy automaker as it attempts to navigate the industry's electric transition.