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Ford Reduces Warranty Costs by $1.2 Billion

Ford has been touting its gain in quality for quite some time now, with publications by Consumer Reports and J.D. Power and Associates confirming its claims in most cases. Now, Ford has cold hard proof of its quality improvements, in the form of cash savings.

In a press release issued today, Ford revealed that in the last two years alone it has saved $1.2 billion in warranty repair costs, due to vastly improved vehicle quality since the 2005 model year. According to the release, Ford’s initial quality is “now in a virtual tie with Honda-Acura and Toyota-Lexus-Scion for the 2008 model year.”

Ford cites a few specific examples, including the Ford F-Series Super Duty and Lincoln Mark LT being at the top of their respective segments (although we’d like to point out that the Lincoln Mark LT’s only direct competition is the Cadillac EXT…) with the fewest “things gone wrong” (TGW) and highest customer satisfaction. It also points to the Mustang GT500 having the least TGWs among sports cars, and 18 of 24 Ford brand vehicles having posted TGW improvements.

“Ford is following a set of standardized processes around the world in product development, manufacturing and purchasing with a discipline this company has never seen,” said Bennie Fowler, Ford’s vice president of Global Quality. We hope Ford outlasts its cash woes so it can continue to transform into the successful, high-quality car company these statistics are beginning to reveal.

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