Ford (NYSE: F | F Price Prediction) ranked No. 1 among “Mainstream Brands” in the new J.D. Power Initial Quality Study. It was the first time it had occupied that spot since 2010. Much of that positive news was wiped out by a recall of more than 740,000 vehicles, according to the National Highway Traffic Safety Administration. The notice said, “The transmission park pawl may engage while the vehicle is in motion, resulting in park system damage.”
The vehicles affected were some 2018-2021 model-year Navigators, Explorers, and Expeditions, the 2020-2021 Explorer, the Lincoln Aviator, and the 2021 F-150. The news is the continuation of a trend. Ford has recalled 11.2 million vehicles this year. Last year, Ford set an all-time record for recalls, with 153, and covered more than 13 million vehicles.
Ford management has repeatedly promised to reduce the number of recalls. The J.D. Power results show that, in the minds of those surveyed, the brand has taken a step forward. However, the actual recall data paint a very different picture, which can be called “reality.”
Recalls are not just a customer-facing problem. Last year, they cost Ford hundreds of millions of dollars in warranty costs.
For the consumer, which Ford is the real Ford? It likely depends on experience. Someone who owns a recalled Ford or has seen recalls in the media might be concerned about buying a Ford product. Many current owners are obviously happy, based on J.D. Power.
The bottom line, as they call it, is that recalling millions of cars has to leave an impression on the wider car-buying public. That means Ford’s climb out of the recall pit is likely to cause it deep trouble.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks