Ford Motor Co. has recorded a staggering number of recalls in 2025, surpassing all of those from 2024 by mid-June. With 81 recalls affecting over 4 million vehicles this year, the financial repercussions from warranty write-offs could threaten Ford's earnings once again. Historically, these warranty issues have led to significant underperformance, as highlighted by CEO Jim Farley's acknowledgment of the company's struggles with recalls and customer satisfaction. Additionally, Ford ranked last in recent reputation surveys among major automotive brands, indicating persistent challenges in quality perception.
As of today [June 21], which is 172 days into 2025, the numbers are eye-popping. Ford has issued a recall every 2.12 days, impacting 4,077,666 vehicles so far.
Ford underperformed expectations last year largely due to unexpected warranty and recall problems plaguing the company's earnings.
We continue to be hampered by recalls and customer satisfaction actions. This affects our cost but more importantly, it falls short on our most fundamental commitment to our customers.
I think we all have regrets and that's a big one for me. So it's a humbling thing.
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