The Explorer, Bronco Sport, and Maverick will undergo thorough inspections as the automaker tries to fix problems before they become recalls
- Ford is delaying delivery of the redesigned Explorer, Bronco Sport, and Maverick for extra quality control checks
- The move is to help reduce the number of recalls Ford issues, and its industry-highest recall and warranty costs
- The automaker did the same with the redesigned F-150 earlier this year, and the scrutiny helped avoid a dozen recalls
Bloomberg said Ford is “the most recalled automaker in America,” and Farley is “willing to lose money to fix what’s ballooned into a (US)$4.8 billion a year problem.” That’s what it costs to look into the problem, determine a fix, issue recall notices, make and ship out any replacement parts, and reimburse dealers for the repairs they perform — both those under recall, or for quality problems that don’t trigger a safety recall but which still have to be repaired at the automaker’s expense under the factory warranty.
Ford is still going to take a major hit for as long as those vehicles are sitting around waiting for their quality checks instead of riding on transport trucks being shipped out to dealers, as well as the time and cost involved in fixing any problems found during the inspection, but Farley is looking at long-term improvements to the bottom line, as well as Ford’s reputation with customers.
Holding all those F-150s resulted in a 65% earnings reduction for Ford’s internal-combustion engine division, Bloomberg reported, but Farley said it also helped avoid 12 recalls, including problems with assembly and software glitches. All-new or redesigned models can sometimes present extra issues for automakers as they integrate new components, technology, and assembly processes into the vehicles.
According to Warranty Week magazine, Ford budgeted US$1,203 for warranty repair costs on every vehicle it sold in 2023, and that was up from $591 in 2019. Overall, all automakers are issuing more recalls, mostly due to the increasing complexity of vehicle technology and more effort spent on catching smaller problems before they become bigger ones; but Ford’s US$4.8-billion warranty/recall costs last year were about three times the industry average.
Sign up for our newsletter Blind-Spot Monitor and follow our social channels on Instagram ,Facebook and X to stay up to date on the latest automotive news, reviews, car culture, and vehicle shopping advice.