Ford in engine fire fears recall

US car firm Ford is to recall 1.2 million trucks, sport utility vehicles (SUVs) and vans over concerns about potential engine fires.

The recall, one of the largest ever, is over fears about the speed control deactivation switch system, which could corrode over time, overheat and ignite.

It followed "exhaustive investigations" by the US National Highway Traffic Safety Administration (NHTSA).

And it comes after Ford announced second quarter losses of $254m (£135m).

The group blamed the losses on an increase in pension curtailment costs related to job cuts.

Ford also said that its luxury division will not be profitable this year.

Models affected

The company has been facing calls to restructure in the face of widening losses and declining vehicle sales.

Like many US carmakers it has been under pressure as its large vehicles - such as SUVs - become more costly to run in the face of rising fuel prices, while its Japanese rivals have seen their smaller cars gain in popularity.

The recall relates to vehicles powered by petrol or natural gas and equipped with speed control.

Those models included in the recall are: 1994-2002 F-250, F-350, F-450 and F-550 F-Super Duty trucks; 2000-2002 Excursion SUVs; 1994-1996 Econoline vans; 1996-2002 E-450 vans and 1998 Explorers and Mountaineers.

The recall does not involve similar vehicles with diesel engines.

http://news.bbc.co.uk/1/hi/business/5243136.stm