Once again, Ford Motor Company is having trouble with quality problems, which has resulted in higher recalls and increasing expenses for warranties. In addition, it compels senior management to reaffirm their commitment to finding a solution to the issue.
Ford Motor Company Is Having Trouble with Quality Problems
At the BNP Paribas conference on Thursday, Kumar Galhotra, the CEO of Ford Blue, the company’s traditional combustion engine business, stated that “these difficulties simply shouldn’t be happening.” “Improving the product’s quality is the top focus for our company right now.”
Since he became CEO in October 2020, Jim Farley has vowed to reduce warranty repair costs by billions of dollars, and the firm has made progress in the past year toward fulfilling this goal. However, this year there will be a retro theme. Due to a problem that may shut off the vehicle’s power supply while it was in motion, Ford was forced to recall 100,000 hybrid models because of the risk of fire. Additionally, supplies of the popular Mach-E had to be halted because of the same defect. Investigators from the federal government looked into catastrophic engine problems that occurred on the famous Bronco SUV.
On Wednesday, during a call with analysts to celebrate Ford’s otherwise successful second quarter, Farley stated that the company is “continually being impeded by recalls and customer satisfaction activities.” “Not only would it have an impact on our costs, but more crucially, it will fail to meet the fundamental commitment that we have made to our clients.”
According to Galhotra, Ford is paying closer attention to what customers are complaining about on social media in order to be one step ahead of any issues. Additionally, the car manufacturer recruited a quality specialist from the research firm JD Power. In addition, the company is working to improve its design, manufacturing, and relationship with suppliers. According to Farley, “There is still some work for us to do in that sector.”