There is a broad market sell-off amid rising tensions in the Middle East. The collapse has created some good buying opportunities, but not every stock that has reached the 2025 highs is a buy. A legacy automaker, Ford ( F ) still doesn’t look like an attractive buy despite falling more than 15% from its recent high.
While some of the decline in Ford shares is due to weakness in the broader markets, company-specific factors are also adding to the woes. Last week, the company recalled 4.3 million vehicles due to software issues, of which 4.13 million vehicles were recalled due to a problem with rear suspension toe links. Now, the National Highway Traffic Safety Administration (NHTSA) says the Blue Oval will recall more than 600,000 vehicles due to an issue with the windshield wiper motor. While recalls are not uncommon in the auto industry, in Ford’s case, the frequency was unusually high.
Last year, the company had 153 recalls, the most for any automaker in modern history. According to the numbers, it recalled 12.9 million vehicles last year, and 2026 looks set to be another disastrous year for Ford in terms of recalls. While Ford management has long said that recalls and high warranty costs are a “legacy” issue that it is trying to address, it has also recalled many new models, so they don’t count as legacy issues.
To make matters worse, February sales data showed that Ford’s US sales were down 5.5% compared to the same month last year. Its internal combustion engine (ICE) vehicle sales fell 0.1%, but a 71% decline in electric vehicle (EV) sales and a 21.8% drop in hybrid sales weighed down the company’s aggregate numbers.
Notably, legacy automakers’ EV business has been struggling, which has prompted them to record huge losses on their multibillion-dollar bets. In December, Ford announced a $19.5 billion writedown, of which $5.5 billion would be in cash. Detroit rivals General Motors ( GM ) and Stellenbosch ( STLA ) also announced large spending cuts from their respective EV businesses amid a slowdown in sales after the withdrawal of EV tax credits.
