Ford Dethroned in U.S. Auto Recalls, Shows Progress on Quality

DETROIT, Mich. – Ford Motor Company, after a challenging year marked by electric vehicle losses, struggles in China, and soaring warranty costs, has finally relinquished its title as the U.S. automaker with the most recalls in 2024. Stellantis now leads with 71 recalls, while Ford follows closely with 67, marking a significant shift in the industry.

Ford’s 67 recalls affected nearly 4.8 million vehicles, a notable improvement from 2023’s 5.7 million and a stark contrast to 2022’s 8.7 million. Tesla, despite its 16 recalls, surpassed Ford in the number of vehicles recalled, with over 5.1 million. However, Tesla’s recalls were largely resolved through over-the-air updates, with less than 1% requiring dealership visits, compared to 99% of Ford’s recalls.

“We are making a lot of progress on quality, and customers with our latest vehicles are benefiting from it,” said Jim Baumbick, Ford’s vice president of product development, operations, and quality. “We have more work to do, as our ambition is to have best-in-class quality, and we won’t be satisfied until we achieve and sustain it.”

Ford also climbed 14 spots in J.D. Power‘s 2024 U.S. Initial Quality Study, moving from No. 23 to No. 9. The company has emphasized improvements in launch quality, a key indicator of future warranty performance. Despite these strides, Ford’s warranty costs remain high, reaching $2 billion in the second quarter of 2024, or 4% of sales, up from $1.2 billion in the first quarter.

According to Mike Ward of Freedom Capital Markets, Ford’s warranty costs averaged 1.6% between 2011 and 2019 and 2.9% in early 2022 before spiking to 4% in 2024. While Ford has made progress, the impact of these improvements on warranty costs will take time, as most costs stem from older models. Newer models may take up to 18 months to positively influence recall results and warranty expenses.

For Ford investors, the reduction in recalls and progress on quality offer a glimmer of hope after a tumultuous year. However, the company still faces significant challenges in reducing warranty costs and achieving its goal of best-in-class quality.