Recalls happen all the time with consumer goods. Warnings have been sent out about recalls for both veggies and antacids. I’ve gotten letters this year about two different items: chicken wraps and washing detergent. In the first case, the problem was bad packing, which was hard to open, so I kept it. In the second, there might have been listeria contamination, but I had already eaten it. I didn’t end up in the hospital, and my clothes were still clean. What happens, though, when a company has more recalls than usual, especially for goods that were just released? Ford would rather lose money upfront by having to wait weeks for shipments because it wants to cut down on recalls and the costs that come with them. But it’s not good either. Since 2020, Ford has had the most recalls, so it’s a fact. (You didn’t think it might have been someone else, did you?) A new report from Bloomberg says that FoMoCo lost $4.8 billion last year because it was the leader in the wrong field. This is about three times the rate for the industry and makes up almost four percent of all automotive sales. It now costs about $1,203 to fix something under guarantee, up from $591 in 2019. Automakers are recalling more cars generally. NHTSA data shows that the number of recalls went up by 42% between 2013 and 2023. This was mostly because OEMs came out with new products. Ford is going to delay sending newly designed cars to stores for up to six weeks so that the company can do more quality checks at the factory. This will affect both the original bottom line and the pay of the executives. If quality goals aren’t met, bonuses aren’t given out. Jim Farley, Ford CEO, said our profit might not be steady. However, this new process will have long-term benefits, such as fewer recalls and lower insurance costs. Ford began its “build-and-hold” program when the new F-150 pickup came out earlier this year. Over 60,000 brand-new trucks were held up on factory lots for weeks so that engineers could do last-minute, very thorough checks. Since the F-150 is the most famous car in the US, there are many trucks to choose from. Ford says that the extra downtime prevented 12 recalls because of software problems and mistakes in the manufacturing process. However, the ICE model, which is the company’s most profitable model, saw its revenue drop by 65%. Everyone will get the same treatment for the newly redesigned Explorer, as well as the better Bronco Sport and Maverick. The Bronco Sport, F-150 Lightning, Maverick, and Mustang Mach-E should have been the first cars to show this. Finally, this situation is good for everyone. Dealers may have less work to do, but they won’t have to deal with unhappy return customers. Ford saves money while rebuilding trust with customers, and buyers will be glad that the car they bought wasn’t a lemon.
