This post is one in a series on prominent company nicknames. See all 25, and share your thoughts and memories about Ford below in the comments.
I didn't grow up in one of those families that placed a high premium on American-made goods. If the Japanese can make it better, we'll buy it from them! was the general consensus. And those foreign autos served the Harrows well. My parents bought their 1984 Toyota Tercel when it was new, and that unattractive but reliable compact was part of the family through the beginning of my college career -- even surviving my first, hilarious attempts to operate a manual transmission. So, it wasn't until I moved in with my friend Debbie, as an adult, that I learned the details behind a particularly unflattering nickname for the Ford Motor Co. (NYSE: F).
There are those who would joke that the letters in "FORD" stand for "Fix Or Repair Daily." I know from experience that if you make that particular wisecrack within Debbie's earshot, she probably won't crack a smile. Instead, you can almost see her wheels churning, as though she's trying to calculate the thousands she's already poured into her Ford Focus -- or maybe she's just trying to predict which part will break down next.
During the time we shared a mailbox, it was a not-out-of-the-ordinary occurrence for Debbie to receive recall notices bearing the familiar Ford logo. These repair-o-grams arrived with such frequency that the exact number now escapes my memory; when I questioned her via text message, she replied, "I have had six. Stupid car."
If you own a Ford F-150, or a Lincoln Mark LT pickup truck, then you want to pay special attention to this, as Ford (NYSE: F) has announced that more than 655,000 of these vehicles are being recalled at this time.
The reason behind the current recalls is a possible problem with a hose that can affect the trucks' ability to brake properly. So far, Ford claims that there have been 11 accidents resulting from the faulty hoses, but that there have been no injuries to date.
The vehicles in question involve the 2005 and 2006 models of the trucks that come with the 5.4 liter 3-valve engines. If you have one of these trucks you should contact your local Ford dealer as soon as possible and get your replacement hose, at no cost to you.
Most of the trucks in question are located in the United States, which accounts for more than 600,000 of the trucks. Canadian residents account for another 50,000 vehicles, with the small remainder being located in other countries around the world.
Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.
An electrical problem in Chrysler LLC's Chrysler Sebring and Dodge Avenger vehicles is resulting in a massive recall of 212,347 cars to fix the problem.
The vehicles in question involve models from 2007-2008 that deploy standard tire pressure monitoring systems. Apparently, electrical connectors in the system have been rusting, leading to problems starting the engine, dead batteries, inoperative cruise control, or even the vehicle's engine stalling.
Chrysler has stated that there have been no injuries reported as a result of the problem, but that it had already received nine reports from consumers that their engines had stalled out on them.
On January 16, 2008, a voluntary recall of approximately 5,400 John Deere Compact Utility Tractors was initiated by the Consumer Product Safety Commission in cooperation with Deere and Co. (NYSE: DE). The problem with the tractors is described as a forward drive pedal that can get stuck, creating a potential for loss of control and injury to people.
The recalled tractor's model number is 3203, and you may check the CPSC press release for specific serial numbers. It is suggested that consumers discontinue using these particular tractors and contact a John Deere dealer to schedule a free repair. You may reach Deere & Company at (800) 537-8233 between 8 a.m. and 6 p.m. ET Monday through Friday and between 9 a.m. and 3 p.m. ET Saturday. You are also invited to visit the company website at: www.johndeere.com.
For parents out there, this recall, at this time, appears to be more proactive than anything else. According to Merck, the company decided to recall approximately 1.2 million doses of the popular childhood vaccine after it discovered that the equipment used to make the vaccine had been contaminated with bacteria.
For those of you who are not familiar with the Hib vaccine, it is used to vaccinate children against meningitis, pneumonia and other serious illnesses.
This post was part of AOL Money & Finance's Best & Worst of 2007 feature. Voting has now closed and readers have chosen rising fuel pricesasthe most worrisome consumer trend. Be sure to let us know in the comments if you are pleased with this result.
The most Worrisome Consumer Trend of 2007 is ... whichever one you choose. The following is my analysis of four candidates -- ranging from can't sleep at night to minor complaint:
China product recalls.30 million Chinese products -- many of them toys -- have been recalled in the last several months. With the holiday shopping season in full swing, this has to be among the most worrisome consumer trends. It's not easy to find out if a product is made in China. This list of U.S. made toys might help, and this list of Made in America products might also be useful.
Subprime and mortgage meltdown. The cost to society of the subprime mortgage meltdown could be as high as $4 trillion. Two million people are expected to lose their homes to foreclosure by the end of 2008. If you are one of these people, this trend is definitely costing you sleep. And since there's no way of knowing how widespread the damage will be, everyone in the world should be worrying about this one.
Unfortunately for parents out there preparing for the upcoming holiday season, this past year's toy recalls have to be a constant reason for concern, and today we get news of another recall. By now we are pretty adjusted to reading news of recalls due to high levels of lead paint, but today's recall involves something a little more alarming ... a date rape drug!
Yes, you read that right, it has been announced that millions of toy products in North America and Australia have been taken off the shelves after it was discovered that they contained chemicals that, when digested, convert into the date rape drug gamma hydroxy butyrate (street name of GHB). The toys in question are toy beads that go by the name Aqua Dots, and are considered a highly popular holiday item, which is distributed by Toronto-based Spin Master Toys. For Australian consumers, the toy sells under the name of Bindeez.
Just how popular is this toy line? This year in Australia it was named toy of the year. Just how dangerous is the ingestion of the drug? If swallowed, one of these beads can induce unconsciousness, seizures, drowsiness, coma and death.
Is it time to start selling your Mattel, Inc., (NYSE: MAT) stock? In Yet Another incidence of Fisher Price toys being tainted (figuratively and literally) with lead, Amazon.com (NASDAQ: AMZN) has pulled the Fisher Price Medical Kit from its web site after a Consumer Reports article that questioned the lead content in the kit's toy blood pressure cuff. Mattel has insisted that children can play doctor safely because the toy "meets the requirements set forth in the federal regulations and international consumer product safety standards, including the existing standards for lead content." Note Mattel did not claim that the toy was free from lead.
Judging by the excitement over leaked Black Friday ads, it seems as if I'm a rarity. This news does bring out a couple of questions, however:
Will we soon start seeing vigilante recalls like this one from Amazon.com as retailers work to minimize their risk in toy recalls?
Does it cost enough to effect a recall that it might make sense to anger a major supplier like Mattel?
Isn't this recall just a little bit too ironic? My blood pressure is rising, too!
Answers would be appreciated; though of course my biggest question will remain unanswered for some time, ergo, how long will consumers continue to put up with unsafe products?
Target (NYSE: TGT) and the U.S. Consumer Product Safety Commission have announced a recall of the popular Cars movie-themed backpacks which contain magnets that could become dislodged. Any small pieces that can easily be taken off any consumer product are a choking hazard to small children.
Again and again, Chinese manufacturers and U.S. vendors can't seem to design products made for children that won't end up with parts that can come off and be swallowed by kids. We're cracking into the human genome in another field, but hey, forget backpack design, right? My goodness, must be a toughie.
110,000 Chinese-made Cars backpacks are being recalled after magnets fell out of a piece of the plastic enclosure attached to the backpacks in three separate instances, although no subsequent injuries were reported. The backpacks in question were sold at Target stores nationwide from February through September of this year for $13 each.
So, this may not be a lead-paint recall issue from Chinese-sourced products, but that does not diminish the fact that it's still just as important. With China now making 80% of the world's toys, the parade of recalls is sure to continue. Stay tuned to BloggingStocks for more coverage of product recalls from the retail industry as they happen, because they will.
Today's recall involves around 90,000 items, 70,400 of which were imported by J.C. Penney Company (NYSE: JCP) and feature the beloved Walt Disney (NYSE: DIS) character Winnie the Pooh. The culprit is, once again, excessive levels of lead paints. The actual products J.C. Penney was forced to recall were Winnie the Pooh playsets and decorative ornaments with a horse-theme, as well as art kits made in Taiwan and Vietnam.
The good news is that many retailers like J.C. Penney are doing their best to try to keep these toxic toys from landing in the hands of children. Earlier this summer, the company decided to hire an independent laboratory to run tests on all of its painted toys. These independent evaluations, which started in August, are credited with catching today's recalled toys.
The latest from the China-linked recall department: The federal Consumer Product Safety Commission on Tuesday announced that Starbucks (NASDAQ: SBUX) has voluntarily recalled 250,000 children's mugs, which it sold from last May until this August. Apparently the colorful plastic faces of Dot the ladybug and Dash the turtle can break off, posing an inviting and pointy choking hazard for your youngest. The latte empire has so far gotten just seven reports of the cups breaking. No injuries have been reported, thankfully.
No one will be surprised to learn that the mugs were of course manufactured in China, adding to the long list of Chinese-made toys, scooters, and knickknacks that have been recalled for choking hazards, high lead levels, electrical shock risks, likelihood of catching fire and so forth.
Dating back just to Thursday, 14 of the CPSC's last 15 recall announcements concern products manufactured in China (the P3 IonizAir air purifier was made in Taiwan). And, your favorite domestic companies are surely striking new contracts for Chinese outsourcing right now, so start your boycotts or brace for more recalls going forward.
(This is not terribly related, but it's worth wondering whether recalls of products that might find their way into higher-class homes get more press than cheap tchotchkes, such as these fun but excessively leaden keyrings, which sold for a buck at the KKR-held Dollar General.)
At least this recall was not for something made in China. The Sam's Club unit of Wal-Mart Stores Inc. (NYSE: WMT) said that beef from agribusiness giant Cargill might contain E. coli that cause intestinal illness.
According to the Associated Press, "Cargill learned of the issue Friday, when a compliance officer from the federal Agriculture Department visited the company's ground beef facility in Butler, Wis., Klein said. Officials had traced the patties back to that plant."
Of course, the fact that the meat came from Cargill does not do Sam's Club much good. Few consumers look beyond the brand of the retail outlet when a generic product like beef is recalled.
The news showed that no matter how vigilant U.S. companies are, they remain dependent on their suppliers both for goods and services, and, ultimately, their reputations. Mattel Inc. (NYSE: MAT) has learned that the hard way as it struggles to get out from the damage done to its reputation by the sale of lead-painted toys built in China.
No big retail company has enough inspectors, or can afford enough, to make certain that each item it sells is OK. The Chinese may make bad toys, but it appears that the U.S. has made some bad meat.
Six days after issuing America's second ever largest beef recall, Topps Meat Co. announced today that the company is going to be going out of business. The amount of beef that was eventually involved in this recall totaled some 21.7 million pounds of the company's ground beef.
The company, which had been in business for the past 67 years expressed regret and stated that the event was "tragic for all concerned" and admitted that most of the recalled meat had already been consumed before it was recalled. The total amount of beef that was recalled was equivalent to roughly a year's worth of production.
So far, there have not been any reported deaths from the tainted meat, which has led to 30 reported cases of E coli. The good news is that properly cooking the ground beef was able to prevent the E coli breakout from being much more widespread. The disease is killed in meat that is cooked to an internal temperature of 160 degrees.
Me. A mom. Presumably the sort of human being who'd be up in arms with outrage over this latest bit of recall news. Instead, I'm rolling my eyes and wondering what's really behind all this recall madness. Is it a slow news week? (not with all the fun we're having with world's credit market meltdown!). Terrorists out to kill our children via poisonous toys? Or is is just our hysteria over China eating our lunch. The lunch we happily sent over to them.
I think it's probably the latter. And that's not to say I have any doubt over whether China is turning out mountains of subpar crap for us. Standards are different over there, after all. And at the end of the day, everyone gets what they pay for, right, Mattel (NYSE: MAT)?
I'm just starting to find it suspect that every day brings new screaming headlines about more poisonous, sub-par products being sent to us from China. Toxic toothpaste! Poisoned pet food! Lead-coated toys! Now it's killer bibs!
It's been a few weeks since Mattel, Inc. (NYSE: MAT) announced a million-toy recall, and the dust is far from settled. The Chinese supplier that supplied paint for a huge collection of children's toys has seen its CEO commit suicide and parents are still under the gun on which exact toys to trust their kids with. The problem is lead-based paint, which can lead to health complications. Outside of the normal "small parts" recall fiascos that seem to happen every year, the lead paint issue is a big one. Young kids put everything in their mouths.
This week, Mattel has -- once again -- urged parents to withhold many of its toys from all those curious kids. When a toy manufacturer directly tells customers to not use its products, something is amiss, of course. With more than 19 million toys worldwide under scrutiny, how did this problem become so large before being detected?
Quality control in China -- with raw materials and product manufacturers -- has slid far, far downhill. Retailers carrying items from multiple Chinese-based recalls may be feeling the backlash, and the American consumer is probably going to demand better in the near future. In other words, if "low prices" means "horrible quality," where does that leave discounters like Wal-Mart Stores, Inc. (NYSE: WMT) and Target Corp. (NYSE: TGT)? With plummeting toy sales, most likely. Is that priced into the stock of either retailer? Probably not.