FDIC Approves Ford’s Industrial Bank Plan as 119K-Vehicle Recall Spurs Warranty Costs
The FDIC approved deposit insurance for Ford, enabling the automaker to establish an industrial bank offering financial services. Ford is recalling 119,075 US vehicles over engine block heater defects, with interim owner notices by Feb. 13, 2026 and final fixes due by April 2026, potentially raising warranty costs.
1. Ford Issues Recall on 119,075 Vehicles Over Engine Heater Defect
Ford Motor Company has announced a safety recall covering 119,075 U.S. vehicles built between 2013 and 2024, including select Focus, Escape, MKC and Explorer models. Regulators estimate that 1,191 vehicles developed a crack in the engine block heater, leading to coolant leaks that can short-circuit the heater when plugged in and potentially cause an under-hood fire. Owners may observe coolant spots on driveways, loss of cabin heat, engine overheating or smoke and odor from damaged wiring. Ford will replace the block heater free of charge and advises owners not to plug in the device until repairs are completed. Interim notification letters will be mailed by February 13, 2026, with a final remedy scheduled for April 2026.
2. Stock Climbs 33% in 2025 Following Strategic Pivot Away From EVs
In 2025, Ford’s shares surged 33% after the company shifted its focus from fully electric vehicles to hybrid and traditional combustion models. December’s announcement to discontinue the F-150 Lightning and cancel several EV truck programs triggered a $19.5 billion non-cash impairment charge, but was credited with improving near-term profit prospects. For the first nine months of the year, revenue rose 3% to $141.4 billion, while adjusted operating income declined from $8.1 billion to $5.7 billion, largely due to a supplier fire at a Novelis plant in New York. Analysts forecast adjusted earnings per share of $1.52 in 2026, up from a projected $1.10 in 2025, valuing the stock at roughly nine times forward earnings and positioning Ford for continued gains if macroeconomic conditions remain stable.