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Ford’s improved quality could save the company $300 million

12/03/2007, 10:28 AM

By Drew Johnson

Ford’s improved quality could save the automaker $300 million in warranty costs next year, a new report finds. Ford was able to save $900 million this year through fewer dealer repairs.

“The numbers that we’re targeting, probably another $200 to $300 million, would be in line, certainly in line with the substantial improvement we made this year,” said Ford’s Vice President, Bennie Fowler.

Improved quality is a key portion of Ford’s North American turnaround plan. According to The Detroit News, the automaker has seen 11 consecutive years of U.S. market share declines.

Ford had four of the top ten brands in J.D. Power & Associates’ annual initial-quality survey released in June.

The savings are currently being used to off-set Ford’s $12.6 billion shortfall last year, but will soon be used to develop future models.

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12/03, 10:30 AM

posted by:

CTS DRIVER

seems like ford should have figured this out BEFORE TODAY!!!!!!!!!!!!!!!!!!

12/03, 10:34 AM

posted by:

morrisangelo

Why has it taken GM, Ford & Chrysler 25 years to figure this out?

12/03, 10:37 AM

posted by:

lucklaster

Ford – your initial-quality is turning out great – NOW – where are the sexy new products???

12/03, 10:43 AM

posted by:

R1GHT30U5

Sounds like the same load of crap that Ford was doing about 5 years ago. All the sudden many service departments started rejecting every warranty claim they could possibly get away with. Within months Ford and the press were boasting about how warranty repairs had gone down claiming it was the result of increasing quality. Total bull****.
Many of the Mustang and Lightning folks know what I am talking about.

12/03, 10:46 AM

posted by:

tripleonefive

Wow who would have thought that having a reliable product would actually save money
Im glad the american companies realize this so they wont put out the crap they have put out for the last 20 yrs and counting

12/03, 11:08 AM

posted by:

jonnycat

Funny how Toyota just forgot this whole lesson. I guess we can expect more crap for the next 20 years.

12/03, 11:29 AM

posted by:

Fletch

Better quality with dated products, yea.

12/03, 11:43 AM

posted by:

SwerveEarly

Just need a little help in design and engineering departments now.

12/03, 12:35 PM

posted by:

F3INT))AP3X

Say what you will about Ford, but watch them make a turnaround. They may be sucking in the style department right now but there is no denying the experience and the foothold that Ford has in the auto industry, especially in the U.S. Ford has been around the block more than a few times and I am positive that they know exactly what needs to happen; even if none of you seem to think so.

12/03, 12:35 PM

posted by:

cookie4me

Things are coming together for Ford. The Fusion, the Edge, high quality marks, and the cost savings. Unfortunately, They needed to be here 10 years ago and now I am afraid a potential bust in the US credit fueled economy could possibly a death blow for a company that has delivered a lot of positive changes. Hopefully, they have a plan to deal with a shrinking US car market.

12/03, 12:39 PM

posted by:

sharpie

Fletch, do you call the Fusion DATED? That was a 03 platform and going to be replaced in 2009. The Edge and Escape are both pretty new. The F150 will get a refresh soon, but still only a 2004 model. The Mustang is a new model from 2005. Those aren’t dated. I will give the Focus and Ranger to you. The Focus might last 4 more years, nut the Ranger is being killed anyway. Overall, the lineup isn’t dated.

But yeah, it’s not rocket science to figure out less warranty claim equals less money wasted.

12/03, 1:17 PM

posted by:

Fletch

Yes, the Fusion platform is based off a ‘99 Mazda platform, the Focus chassis is from the mid 90’s, the Explorer has possibly the worst ride I have felt for a modern day SUV. And I think Henry Ford built the first Ranger.

12/03, 1:52 PM

posted by:

67_L-88

Fletch, not to mention the Crown VIc or Econolines. There ancient.

12/03, 6:34 PM

posted by:

carbonsigma

Better late than never!

12/03, 7:30 PM

posted by:

jackjimturkey

Maybe the wrong company is using “duh” as a slogan

12/03, 8:38 PM

posted by:

Arbiter

I know of NO Ford dealer who will deny a warrranty claim that Ford will pay. Despite urban legend, dealers make a more than fair profit on warranty claims AND they get paid in two or three days. The only claims they refuse are ones they KNOW will be denied.

If you think a dealer WANTS to refuse your repair, you also need to invest in the 200MPG carburator….you know the one that will soon put electronic fuel injection out of business!

12/03, 9:09 PM

posted by:

johnnycanuck

You know how it’s fun to watch old movies and impress your friends when you guess the year the film was made because you recognize the make, model and ( + or minus a couple ) the year of the cop car in the chase scene. Too bad the Crown Vic has blown that little trick out of the car guy’s repetoire. We’ll be ****ing lucky to get the decade…

12/03, 9:12 PM

posted by:

Fleming in Tennessee

Fords Econolines are just about the best vans on the market. Have gotten over 400K miles on two of them so far, and they’re still going. Focus platform isn’t any older than Camry and Corola! When something gets-R-done, why monkey with it?

12/03, 10:26 PM

posted by:

swamprat

R1GHT30U5

You are right on target with that one. I had a Mustang 10 years ago and my experience was similar. Warped brake rotors at 15,000 miles. They wouldn’t replace them because they were a “wear” item. I didn’t abuse the car, they just used crap materials from China, even back then. I never had problems with any other cars that I owned.

12/04, 7:26 AM

posted by:

JohnnyBlazE

Ford Europe figured this out a long time ago… :P

12/04, 8:14 AM

posted by:

1c3d0g

About damn time Ford…yes, quality is what it’s all about.

12/04, 10:41 AM

posted by:

planet_drive

Ford to improve quality? lol Just the fact that they want to focus on quality now shows how worthless this company is. Quality is priority from day one, no matter what you make. But ford being the worthless corporation it is felt there was more money to be made building crap and then earning big profits in selling replacement parts. But now thankfully people are not as stupid as before and noone wants to buy fords anymore. The make a quick buck scam has not worked out for ford.

12/04, 11:09 AM

posted by:

jackjimturkey

Fleming: I agree with you.

p-drive: Is there a courtroom availablein nuremburg to try your parents for crimes against humanity fromwhen they decided to reproduce.

Talk about worthless. You’re as worthless as a 7′2″ black with a small pecker who can’t play basketball

 
 
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