Montour is losing its mojo.
The Toronto-based car manufacturer is in the midst of a restructuring that will see it focus more on high-end models like the XS, XR and XC, and less on low-end, luxury SUVs.
The restructuring is part of a wider plan to consolidate its operations, which are currently split into two companies: Montour North America, which produces luxury SUVS, and Montour South America, a luxury SUV brand.
This is not the first time the two companies have come under fire for poor product quality.
In April, the company was forced to apologize after a photo of a worker wearing a Montour helmet while working at a manufacturing plant in Texas sparked outrage.
In November, a report surfaced accusing the company of hiring illegal immigrants and underpaying workers.
Montour’s troubles have been compounded by a recent spate of auto recalls, including two in Michigan, one in Illinois and one in Washington, D.C. One of the recent recalls involved a 2014 Jeep Grand Cherokee with a faulty ignition key that led to the death of a 15-year-old boy.
In February, the U.S. Transportation Department said it was investigating a report that a driver in Florida had been driving a Montours SUV.
The agency cited a number of issues, including improper brakes, a faulty air bag, and “serious engine defects.”
A month later, the automaker recalled another 4.5 million vehicles worldwide.
At the time, Montour said it would have to sell off the majority of its operations in the U., Canada, and Mexico to make room for the new restructuring.
Montours CEO Paul Montour, right, shakes hands with CEO Tim Cook, left, during a visit to the company’s headquarters in Montour-sur-Seine, France, on Thursday.
Montrouge North America CEO Eric Fournier told The Canadian Press the company had lost money on the auto parts business since the restructuring, which will cost the company an estimated $5 billion.
“It’s very difficult to get back on the road,” Fourniers said.
“We need to get that back.”
Fournaires also said he expected the restructuring to cause significant losses for the company.
“I think we’re going to be very, very, unhappy with the outcome of this, and we need to take it out of the equation,” he said.
Montouges stock fell 2.3% to $9.68 in trading Thursday.
The latest auto recalls are a setback for Montour.
Earlier this month, it said it had recalled 5.5% of its U.K. and European vehicles due to a safety defect that could have caused an ignition switch failure.
The company also said it has recalled a number to 10.6 million vehicles globally because of a defective air bag.
The automaker said it expects to make up the shortfall in sales in the coming months, but is still in the process of reviewing the reports.
“Our goal is to continue to improve the safety of our vehicles,” Fours said in a statement to the media.
“However, we must also be able to continue providing for our employees and the communities they serve.”
In February, Montrouges shares plummeted more than 20% after the company revealed it had paid out $1.8 million to settle charges by a whistleblower in its hiring practices.
Fournires company is also under investigation by the U-K.
government over allegations that it misled investors about its plans for a new U.N.-sponsored program to reduce carbon emissions.
The company has also faced mounting criticism for its handling of an earlier recall of two million vehicles, which was linked to a faulty steering wheel.