Ford Says Its Quality Is Improving; Why Is This Number Going in the Wrong Direction?

Core Viewpoint - Ford Motor Company has faced challenges related to recalls and warranty costs, which have impacted its financials, despite claims of quality improvements [1][2]. Group 1: J.D. Power Initial Quality Study (IQS) - The J.D. Power IQS, now in its 39th year, surveys over 90,000 customers of new vehicle models after 90 days of ownership to assess problems per 100 vehicles [3]. - Lexus ranked highest overall in the 2025 study with a score of 166 problems per 100 vehicles (PP100), followed by Jaguar and Genesis [4]. - For mass-market brands, Nissan led with a score of 169 PP100, while Hyundai and Chevrolet followed with scores of 173 PP100 and 178 PP100, respectively [5]. Group 2: Ford's Performance in IQS - Ford scored 193 PP100 in 2025, which is below the industry average and worse than its previous scores of 178 PP100 in 2024 and 174 PP100 in 2020 [8][9]. - The decline in Ford's score raises questions about the improvement in vehicle quality and potential rising warranty costs [9]. - The automotive industry has seen increased complexity in vehicles, which may contribute to initial problems as new technologies are introduced [9]. Group 3: Implications of IQS Scores - The J.D. Power study focuses on initial problems within the first 90 days, which are not likely to correlate with recalls or significant warranty costs [12]. - Issues identified, such as infotainment problems and cupholder sizes, are not expected to impact Ford's earnings significantly [11][12]. - The study serves as a valuable resource for consumer feedback, but it may not accurately reflect long-term vehicle quality improvements [13]. Group 4: Conclusion on Ford's Quality - Despite the declining scores, there are no immediate red flags regarding potential recalls or earnings impacts for Ford [14]. - The company’s recent quality initiatives may take time to manifest in improved scores as newer models replace older ones [13].