Ford CEO: Quality Issues Are Ending, Best Days Ahead

Ford Motor is signaling a significant shift away from a decade plagued by vehicle recalls and quality issues that previously damaged its reputation and earnings. CEO Jim Farley expressed confidence that this challenging period is concluding, highlighting a key quality milestone achieved by the company. He emphasized that Ford has learned from its past errors and is committed to flawlessly launching numerous new products in the coming years.

Farley acknowledged the complexity of introducing new vehicles, especially those with advanced technologies like software-defined systems and electrified powertrains. He noted that such issues have cost Ford billions of dollars during his tenure. However, the company has made progress, reducing warranty and materials costs by $1.5 billion in 2025 and targeting further reductions for 2026.

Recent external validation supports Ford's efforts, as the brand was named the top mass-market brand in the U.S. in J.D. Power's initial quality ranking. This marks the first time since 2010 Ford has achieved this distinction. The company's stock saw a 2% increase following this news on June 25.

Farley indicated that Ford is about halfway through its turnaround efforts under the Ford+ business plan. While acknowledging that quality improvement is an ongoing journey, he believes the company is building a culture of quality that is essential for long-term success and durability.