Like a Greek chorus, Ford Motor Co. (NYSE: F) management says it will improve its quality problems. These claims hurt the relationship with customers and make it harder to sell cars to potential new buyers. They also cost Ford hundreds of millions of dollars in charges to its quarterly financials. CEO Jim Farley has repeatedly stated that the problem will improve. However, Ford just recalled another 694,000 vehicles.
24/7 Wall St. Key Points:
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Another recall of Ford Motor Co. (NYSE: F) vehicles has further damaged the automaker’s reputation.
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Maybe former CEO Alan Mulally ought to be brought back.
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The new recall includes Bronco Sport and Escape models. The National Highway Traffic Safety Administration reports that fuel injectors may crack and leak fuel inside the engine compartment. This increases the risk of a fire.
According to The Wall Street Journal, “Through the end of June, Ford issued 88 safety recalls.” KBB points out that “Ford has issued more recalls in 2025 than the next five automakers combined.” The automaker will recall more vehicles in 2025 than it makes in a year.
Last year, recalls cost Ford hundreds of millions of dollars in its financials. Based on this year’s recalls, the figure could be worse in 2025. Last year, during its earnings announcement, Ford reported that warranty costs were $800 million higher than in the same quarter the previous year. Warranty costs then hit the third quarter as well. The fourth quarter was part of a broader pattern that affected the entire year of 2024.
Farley has spent a great deal of time recently discussing the high quality of Chinese electric vehicles (EVs) and predicting that Ford needs to up its game considerably to compete. Without that improvement, its sales worldwide will be hurt. If the federal government drops 100% tariffs on Chinese EVs, Ford could be crushed in its home market.
Farley has some spare time. He has a podcast called DRIVE with Jim Farley. He recently had Jay Leno as a guest. Farley needs to spend more time on Ford business, at the very least, if he wants to keep his job. Executive Chair Bill Ford needs to find someone who has more time to address the company’s warranty issues. Maybe Alan Mulally, Ford’s best CEO in decades, would come back. He’s only 79.
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Author: Douglas A. McIntyre
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