Stock Market Today, March 2: Ford Falls After Multi-Million-Vehicle Recall Hits Investor Confidence
Trading volume reached 103.7 million shares, coming in about 70% above its three-month average of 61 million shares. Ford IPO’d in 1972 and has grown 516% since going public.
How the markets moved today
S&P 500 (SNPINDEX:^GSPC) inched up 0.04% to 6,882, while the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 0.36% to finish at 22,749. Among automotive rivals, General Motors (NYSE:GM) closed at $77.76, down 1.21%, while Stellantis (NYSE:STLA) finished at $7.63, falling 5.69% as investors reassessed sector quality and EV strategies.
What this means for investors
Quality has been a thorn in Ford’s side for years. In 2022 the company hired a “quality czar” to spearhead improvements. Jim Baumbick was appointed to this role to oversee the company’s efforts in improving vehicle quality and addressing quality-related issues.
Yet even as CEO Jim Farley touted quality gains back in 2024, issues persist. The most recent nearly 5 million vehicle U.S. recall was for a towing and trailer safety issue.
It’s not just about warranty costs hurting profitability. It affects the brand’s reputation and could impact future sales. Ford stock has been on a tear over the last year, rising 40% Persistent quality issues could halt that momentum.
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends General Motors and Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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