Ford announced today that it has reduced worldwide warranty repair costs by $1.2 billion over the last two years. This is impressive to read, though without seeing some kind of elaborate spreadsheet, it's impossible to know whether the reduction is primarily on the strength of the U.S. market or other markets around the globe.
Ford notes further that it's making almost 50 percent fewer warranty repairs to U.S.-market Ford, Lincoln and Mercury vehicles today as it was in 2004 -- and that according to the latest U.S. Global Quality Research System study, "initial quality is now in a virtual tie with Honda-Acura and Toyota-Lexus-Scion for the 2008 model year."
Also in this survey, says Ford, the F-Series Super Duty, Lincoln Mark LT (RIP) and Shelby GT500 ranked at the top of their respective classes for "fewest things gone wrong (TGW)." In addition, Ford reports that the Focus pulled even with the Toyota Corolla in the TGW count.
We're not sure how many conclusions can be drawn from this announcement, but given yesterday's report that Ford lost $14.6 billion in 2008, any savings on warranty repairs has to be considered a plus.
desmolicious says:
03:00 PM, 01/30/09
Do they include refusing warranty repairs as a cut?....
(stirring the pot)
rick8365 says:
03:13 PM, 01/30/09
Good - some positive new/progress.
My warranty experience with Ford was decent. The last one I bought was an '01 and whether it was that one or the ones before it, they were really pretty good about acting on the concerns and backing the product. The big problem for me was the number of concerns and the number of trips to the dealer before each would finally be fixed.
The '01 was the last one I bought....I'd like to return to the brand and will if I can be reasonably assured that these frustrations are a thing of the past (and if they'd hold their value a little better).
estreka says:
06:02 PM, 01/30/09
Desmo is absolutely right. But despite that, I do think Ford is getting much better. I think it's still a little far-fetched to say they are on par with Toyota or Honda.
Mulally must frequent our blogs because he's solving the issues we've been complaining about for years.
jederino says:
06:04 PM, 01/30/09
Hey, I want to believe this so badly about Ford. I've owned a '79 Ford Fairmont and an '81 Mercury Cougar (almost identical). Both handed down to me from my Dad and Granddad. They were actually comfy and reliable cars for their time, but not exactly quick with the straight-6. Still, I was proud of them for some reason, and I would consider a new Ford if they keep up the quality!
FromBrazil says:
06:43 PM, 01/30/09
Anedoctal evidence sure, but if that means they're doing what they did to me. I mean, a brand new Ford Ka, had the POS 1 yr. 10 visits to the dealership. If we had lemon laws...Took the hit (financial loss) and got rid of the POS. Got a Renault. Haven't looked back!
steve_ says:
09:24 PM, 01/30/09
WarrantyWeek.com keeps track of warranty providers and they agree that Ford's warranty claims have declined. GM isn't even in the top 50 US companies with the biggest declines, but Ford and several auto suppliers are.
Chrysler, being private, doesn't make it easy to find out this kind of info.
tmanz says:
10:21 AM, 01/31/09
I wonder how the Ford dealers service departments are doing. They somewhat count on warranty repairs for survival.
brn says:
01:19 AM, 02/ 1/09
tmanz, that's an issue for a lot of auto dealers. For quite a while, they were used to losing money on the front end (sales) and making it up on the back end (warranty work). The problem that these dealers are running into is that the cars are too reliable. There's not enough warranty work to make up for the money lost on the front end.
estreka: "I think it's still a little far-fetched to say they are on par with Toyota or Honda." I'm willing to say they've surpassed Toyota. Toyota is way overrated.
greenpony says:
08:00 PM, 02/ 1/09
I've had my Focus now for almost 35,000 miles. No issues. One thing I have noticed at the dealership with this and my other two Fords is that they are trying harder to sell additional services, such as fluid flushes and "winter" inspections. When the manual says coolant doesn't need to be changed until 100,000 miles, I go by that, not by some guy behind the counter trying to tell me it needs to be changed at 30k. I have to say though that I've been happy with my Fords, and will probably stick with the company.