Jim Farley: Ford’s Four-Year Fight to Tame Quality Issues Finally Pays Off

Ford Motor Company has clawed its way to the top of JD Power’s 2024 Initial Quality Study, vaulting from a dismal 15th-place finish among mainstream brands just three years ago to claim the No. 1 spot in the influential survey.

The study measures problems reported by owners during the first 90 days of ownership, and Ford’s average of 152 issues per 100 vehicles not only outpaced rivals like Lexus, Nissan, Buick, Hyundai, and Subaru but also marked a dramatic improvement over its 2023 ranking. Ford CEO Jim Farley attributes the turnaround to a sweeping four-year cultural overhaul that transformed every plant and revamped the company’s quality operating system. “Oh boy, this is a big day for Ford,” Farley said after the results were announced. “We’ve worked really hard for four years to be an overnight success story.

It’s been an incredible journey over the last several years. We have completely transformed all of our plants and our quality operating system.” While the JD Power study only captures early ownership experiences and does not account for issues arising after the 90-day window, Farley emphasized broader financial benefits: he told Yahoo!

Finance that Ford’s warranty costs declined last year and are expected to fall further in 2024, while recall expenses are also trending downward. The quality push has been relentless, with Farley insisting Ford had to match the standards set by Japanese and German rivals.

Workers are now “completely obsessed with all the data,” he said, with teams dissecting every defect to trace its root cause. Beyond quality, Farley revealed Ford is doubling down on affordability, planning to launch five or six new models starting with an electric pickup priced under $30,000.

He also claimed Ford has closed the battery-cost gap with BYD, thanks to breakthroughs from its California skunkworks team.