In August 2022, Ford Motor Co. acknowledged critical quality problems, becoming a leading concern highlighted by a Wall Street Journal article. CEO Jim Farley expressed frustrations over ongoing recalls affecting customer satisfaction and financial performance. Despite plans for improvements, significant recalls persist, hurting earnings potential. A recent recall of 273,000 vehicles underscored the urgency of addressing these issues for future success while competing in the electric vehicle market. However, Ford's management has not provided clear strategies for resolving these core problems, leading to declining investor confidence and stock performance.
"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."
"Cost, especially warranty, has held back our earnings power, but as we bend that curve, there is significant financial upside for investors."
"The new news goes to the heart of whether current management has the skills to solve what Ford has admitted is key to a successful future."
"Ford continues to have a careless culture. It has not detailed its plans to solve the quality issue, and because of this, investors have abandoned it."
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