Ford has had 104 recalls this year, exceeding the combined totals of several major automakers and placing it on pace for over 160 recalls in 2025, possibly 200 if issues worsen. A recent two-day period produced six recalls, projecting a 200 total before November at that rate. Last year's warranty costs reached $1 billion, and warranty expenses are on pace to exceed that in 2025, straining earnings. Ford sold 1,302,699 vehicles through July, and recalled vehicles are expected to exceed that number. Many recalls affect gasoline-powered vehicles. Management has not held a meeting focused solely on the recall crisis. The new Universal EV Platform and leadership choices raise further questions about Ford's future.
The 200 number is realistic. Its most recent set of recalls numbered six in two days. At that pace, it would hit 200 before the end of November. Ford's manufacturing and warranty history is so bad that its warranty costs reached $1 billion last year, and it is on pace to top that figure in 2025. The strain on Ford's earnings is remarkable.
Ford has promised, during each quarterly earnings call, an improvement in quality. It sold 1,302,699 vehicles this year through July. The vehicles recalled this year will be well above that number. Management has not stepped forward in a public meeting to address only the recall issue, even though it may be the largest Ford faces. In many ways, it is worse than the company's electric vehicle (EV) record.
The Ford Universal EV Platform is a complex move from the traditional car assembly model. At its launch, management said, "As with the Model T, Ford is again betting big on America. In Louisville, Kentucky, the reinvention of our company begins in earnest, with the implementation of an innovative manufacturing process to bring this platform to life." It is betting big against the long odds of Ford's recalls.
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