Found On Road Dead: Ford Losing $25 Million Per Day

Ford is grappling with significant financial pressures due to a surge in recall and warranty costs, which have reached $2.3 billion in the past three months. This marks an increase of $800 million from the first quarter, translating to $25.5 million per day.

According to Bloomberg, Ford is attributing the rise to vehicles produced during the pandemic, notably the 2021 model year, which suffered from supply chain issues and government shutdowns. Despite Ford's efforts to improve product quality–evidenced by 30% fewer recalls affecting customers in 2023 compared to a disastrous 2022–the immediate financial impact remains substantial.

According to the National Highway Traffic Safety Administration (NHTSA), Ford has issued 37 recalls this year, affecting over 3.5 million vehicles, making it the leader in recalls among automakers. Chrysler follows closely with 36 recalls for just over 2.2 million cars.

Earlier this year, Ford communicated its quality improvement initiatives, which include holding vehicles longer before launch to ensure they meet standards. CEO Jim Farley believes this strategy will ultimately reduce costs, despite the current challenges. This approach highlights Ford's ongoing struggle to balance production efficiency with rigorous quality control, especially in the wake of the pandemic.

Ford has been ramping up production of its traditional internal-combustion engine models, as consumers stay away from EVs due to high costs and unreliable charging infrastructure. Recently, Ford announced it will start building Super Duty pickups at an Ontario plant initially slated for an electric SUV, now delayed by two years. CEO Jim Farley acknowledged that the EV unit, projected to lose up to $5.5 billion this year, is a significant drag on the company’s overall performance.

This article was co-written using AI and was then heavily edited and optimized by our editorial team.

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