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UPDATE 1-Ford recalls 1.2 mln trucks to fix cruise control

DETROIT, Aug 3 (Reuters) - Ford Motor Co. (F.N: Quote, Profile, Research) said on Thursday it is recalling about 1.2 million trucks, sport utility vehicles and vans in the United States because a faulty speed control deactivation switch may cause fires.

The recall covers F-Series pickups, Explorer and Excursion SUVs and Econoline vans, and includes vehicles from 1996-2002.

Last year, Ford recalled about 5 million trucks for the same problem.

"Today's action includes those vehicles that were identified as having an interaction issue between the speed control deactivation switch and the brake system that could, in rare cases, cause the switch to overheat and ultimately catch fire," Ray Nevi, assistant director, Ford Automotive Safety Office, said in a statement.

Ford's recall comes as the second-largest U.S. automaker is trying to stem steep losses in its North American automotive operations. The company restated its second-quarter loss on Wednesday, saying it more than doubled to $254 million on higher pension-related losses.

Ford dealers will install a fused wiring harness into the speed control system to solve the problem, the company said.

The fused wiring harness cuts off the electrical current to the switch in case there is increased power due to a leaking switch. Increased current can result in the switch overheating.

"Ford has a sufficient supply of fused wiring harnesses to repair customers' vehicles." it said.

The recall includes F-250, F-350, F-450 and F-550 trucks from the 1994- 2002 model years, Econoline vans from 1994-1996 model years, E-450 trucks from the 1996-2002 model years, Explorer and Mercury Mountaineer SUVs from 1998 model year and Excursion SUVs from 2000-2002 model years.

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