Seat belt buckle defect prompts Ford recall

NEW YORK, July 13 (Reuters) - Ford Motor Co. (NYSE:F - news) on Friday said it will start a voluntary recall of 1.4 million vehicles fitted with driver-and passenger-side seat belt buckles that may not latch properly.

The No 2. automaker declined to say how much the recall would cost the company and blamed the problems on ``outside supplier manufacturing issues.''

Auto parts maker TRW Inc. (NYSE:TRW - news), which made the seat belt buckles for Ford, on Friday said it will record a undisclosed charge in the second quarter due to the cost of the recall.

Certain model 2001 year cars and trucks will be recalled for inspection of the seat belt buckles, TRW said, which testing has shown may not latch properly if too little force is applied. TRW said testing revealed the defect in 5 percent or less of the buckles.

Ford spokesman Mike Vaughn said the company has not confirmed any injuries from the defect, but is ``aware of two allegations of minor injuries related to this issue.''

Cited in the recall are Ford's 2001 Crown Victoria, Windstar, Ranger, F-Series, Excursion, and Expedition; Mercury's Grand Marquis; Lincoln's Town Car and Navigator; and Mazda's B Series truck. All recalled models were built between the beginning of the 2001 model year and May 26.

Vehicle owners will be notified by mail and asked to go to a dealership to get the buckles inspected, said Ford, which is also involved in a $3 billion recall of 13 million Firestone Wilderness AT tires, most of which are fitted on its Explorer sport utility vehicles.

Cleveland-based TRW said including the unspecified recall-related charge but excluding unusual items, it will earn 65 cents a share for the second quarter. Analysts expect the company to earn between 56 cents and 71 cents, with a consensus estimate of 64 cents, according to research firm Thomson Financial/First Call.

A TRW spokesman would not confirm whether the entire cost of the recall would be recorded in the company's second-quarter results.

Shares of TRW, expected to release its earnings on July 19, closed at $42.45 on Friday on the New York Stock Exchange. The stock has ranged from $52.75 to $29.38 in the past year. Ford's shares closed 34 cents higher at $25.60.

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