After some years of recall trouble guarantee cost, Ford hired former JD Power Vice President Josh Halliburton in March of this year as chief quality officer. In November, Halliburton has a new boss, Ford moved longtime product development manager Jim Baumbick into the role of chief quality and transformation officer to replace Stuart Rowley. Having just called the sound, Ford will take time to make the play. The Ford Administration report that when CEO Jim Farley recently spoke to Ford’s (FREE) group of retired engineering executives, he told them, “Repairing quality is my #1 priority… It’s the most important initiative across the company. And it’s going to take several years.”
Farley has been on the mission for several years, and things are not much better now than when he officially became CEO of Ford on October 1, 2020. One of the pillars His company’s strategy is to improve quality. Based on Detroit Free Press dataFord Motor Company spent $3.923 billion on warranty costs in 2020 for 4.19 million cars sold globally, nearly $2 billion more than GM in a year where auto factories had to close for two months. Consumer Newspaper‘ Ranked Annual Reliability Study Ford brand ranks 22nd out of 26 automakers in 2020, Lincoln pull up in caboose on the 26th. In 2021, things got worse, Ford spent $3.952 billion on warranty claims for the 3.94 million cars it sold — and those two years are huge improvements over the previous year. 2018 and 2019. Ford has climbed two places In CRreliability survey, Lincoln still last. This year is a bit mixed, Lincoln reached 10th place above CR survey, Ford is in 18th place, the same position as it in 2021, and both brands are up slightly In CRBrand Report of. However, Ford has had 46 recalls covering 6.8 million vehicles in the first seven months of this year, triple the next brand, Tesla, nearly five times more than GM in third place. And CR Rate the bread and butter models like Explorer and F-150 below average in terms of reliability, so so is demand Mustang Mach-Eand said, “All the other Fords are average.”
As Farley told the engineers, “We don’t lose [quality] only for a year or two,” and as all sick people know, recovery almost always takes longer than being sick. otherwise, the report always mentions Farley connecting warranty issues to customer dissatisfaction and Ford’s Bottom Line: This time, it’s clearly all about Job 1. “Until they’re done.” I fix the quality,” he told the engineers, “nothing else matters.”
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