Ford Motor Co. (NYSE: F) has issued its 105th recall for 2025. No car company has reached that number in an entire year. The magnitude of the figure is colossal. This is particularly true for a company that identifies warranty problems as one of its most critical issues to address. These numbers show that the efforts are an abject failure.
24/7 Wall St. Key Points:
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Ford Motor Co. (NYSE: F) has issued its 105th recall for 2025, an unprecedented number.
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Perhaps it is time for new management.
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The most recent recall affects 499,129 vehicles, which is frighteningly close to half of Ford’s monthly U.S. sales. The reason is a brake fluid leak that extends how much time it takes for the brakes to engage, raising the chance of a crash. That is a dangerous problem. The vehicles recalled are certain 2016 to 2018 Lincoln MKX and 2015 to 2018 Edge SUV models.
Ford has repeatedly stated that it will aggressively address the warranty problems that affected its 2024 earnings by hundreds of millions of dollars and will certainly do so again in 2025. In 2024, Ford said it would cut its earnings guidance for 2025, partly because of warranty costs.
Although there is no conclusive evidence that these problems have hurt unit sales, they have certainly damaged Ford’s reputation.
The recall news happens during a period when Ford says it will transform its manufacturing process. Less than a month ago, the company announced its Ford Universal EV Platform: “We transformed the traditional assembly line into a tree with three main branches.” If the company cannot improve its current manufacturing process, why will a radically new one work? Additionally, management states that electric vehicles are at the core of the company’s future. Its initial efforts to build and sell EVs were a failure.
One final issue is how management keeps their jobs. Jim Farley has been CEO since October 1, 2020. Board Chair Bill Ford has had his job since January 1999. It is a miracle either is still employed by the automaker. In Bill Ford’s case, he remains in place because his family holds a controlling interest in the company’s stock.
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Author: Douglas A. McIntyre
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