There is a possibility of a fire risk, but, as yet, there is no fix:
The automaker currently does not have a remedy available to address the recall, but is notifying owners of the elevated safety risk in letters expected to be mailed on Aug. 18.
Anyone got any ideas of the cost of recalls like this? it can’t be cheap!
Nothing a little duct tape can’t fix.
For the latest year that comparative data is available to a Prole like me, 2023, Ford paid out 4% of sales in warranty claims. That is twice the industry average, and the highest in the world.
Every year, since Farley became CEO, he has been promising to improve quality, because the company is constantly flamed by the investing community for how much it pays out in warranty claims.
Then there is the recall, announced a little over a week ago, for failing fuel pumps that can quit in the middle of traffic and leave the car stranded. 850,000 of Ford’s most profitable models involved.
https://www.caranddriver.com/news/a65380916/ford-fuel-pump-failure-recall/
Ford has set an all time record for auto recalls, and it’s only July.
When Ford abandoned it’s “Quality Is Job #1” motto, several years ago, apparently they really meant it.
Steve
Ford’s recalls seem like a recurring theme lately, and from an investor’s perspective, it raises serious questions about quality control and long-term brand equity. While the stock might look undervalued on paper, these issues chip away at trust. I’m holding off until I see operational improvements—not just in EV strategy but in core reliability metrics across their lineup.
Farley’s strategy of declining quality, and escalating price, has fluffed up ATP and GP.
** Ford Motor gross profit for the twelve months ending March 31, 2025 was $25.728B, a 2.35% increase year-over-year.*
** Ford Motor annual gross profit for 2024 was $26.558B, a 3.58% increase from 2023.*
** Ford Motor annual gross profit for 2023 was $25.641B, a 8.37% increase from 2022.*
** Ford Motor annual gross profit for 2022 was $23.66B, a 9.08% increase from 2021.*
That is what Wall St has been trained to look at. Farley is 63. He probably cares not one whit what happens to the company when he takes his loot and retires.
Steve
Thank you Steve for posting the warranty claim rates. Many big automakers are above average. Tesla is low. But the Chinese & Japanese automakers are very low. Very illuminating.
