about 1 month ago
CNBC Jul 3, 2026

Ford achieves quality milestone, as CEO targets flawless new vehicle launches

Ford Motor Company recently reached a significant quality milestone by being named the top mass-market brand in the U.S. for initial quality according to J.D. Power's latest rankings. This marks the first time since 2010 that Ford has led mainstream brands in this influential study, which evaluates new vehicle quality based on owner-reported issues within the first 90 days. CEO Jim Farley emphasized that the company has learned from past setbacks and is focused on successfully launching a series of new vehicles over the next few years with flawless execution.

For much of the past decade, Ford struggled with vehicle recalls and quality problems that negatively impacted earnings and customer trust, resulting in over 53 recalls for more than 12 million vehicles so far this year alone. In response, Ford has restructured its processes, increased collaboration with suppliers, and placed stronger emphasis on quality control. The company has also hired hundreds of technical experts and tied executive bonuses to quality improvements to drive accountability. These efforts helped reduce warranty and materials costs by $1.5 billion in 2025, signaling progress in Ford’s turnaround.

Farley acknowledged the challenge of launching new vehicles, particularly as Ford integrates advanced technologies like electrified powertrains and software-defined systems, which increase complexity. He expressed cautious optimism that ongoing quality initiatives will lead to a substantial reduction in future recalls and warranty expenses, although he stopped short of predicting when Ford will no longer lead in recalls. The CEO stressed the importance of a long-term approach, viewing quality improvement as a continuous cultural commitment rather than a quick fix.

Despite the initial quality recognition, Ford’s longer-term dependability ratings for its brands remain below average, illustrating the ongoing work needed to enhance durability and reliability over time. Farley remains confident that the company is midway through its quality turnaround and underscored the importance of maintaining momentum through consistent execution. Overall, Ford’s recent achievements provide a promising outlook as it works to restore its reputation and strengthen customer confidence in an increasingly competitive automotive market.

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