5 Changes Ford’s Making to Correct Recalls Costing It Billions originally appeared on Autoblog.
Key elements of Ford’s new quality strategy
Ford has implemented several changes to its quality control processes due to extensive recall orders costing the company billions over the past five years. The automaker began these revisions in 2023, and while its 90 recalls in 2025 have already set the single-year record for any manufacturer, the changes aim to improve long-term quality and reduce warranty costs. According to the Detroit Free Press, Ford’s changes to its quality processes include more rigorous procedures around new vehicle launches, hiring 300 specialists to assist with engineering and design, tougher vehicle tests, altering supply chain operations to receive higher quality parts, and adopting principles from Toyota’s “lean manufacturing” production system.
What led Ford to follow Toyota’s lead
Toyota said the goal of its lean manufacturing system is to “thoroughly eliminate waste and shorten lead times to deliver vehicles to customers quickly, at a low cost, and with high quality.” Two pillars make up Toyota’s Production System (TPS): jidoka, or automation with a human touch, and Just-in-Time. Jidoka means immediately stopping production when abnormalities are present and optimizing productivity. Just-in-Time synchronizes production processes by linking all plants in an ongoing flow and only making what is needed, when it’s needed, and in the correct amount. In other words, just-in-time is a demand-driven flow that avoids stockpiling large inventories. While the concepts may seem like common sense, Toyota’s discipline and continuous application of the system is what’s making the difference.
Changes to Ford’s quality processes starting in 2023 coincide with a settlement with the National Highway Traffic Safety Administration (NHTSA), under which it agreed to evaluate its recalls over the past three years to expand the recall scope if necessary. Ford’s leaders have said the manufacturer’s frequent recalls reflect its commitment to safety and help save the company money, despite spending billions on the quality problem in recent years. Kumar Galhotra, Ford’s chief operating officer, spoke to the Detroit Free Press about changes to the automaker’s quality processes: “The proof’s in the pudding, right? We are seeing clear results on our initial quality, all the internal data, as well as from third-party data. The early indicators (of Ford’s changes to fix quality) are very good. And, over time, the recalls will come down with it.”
Evidence in favor of the above
Recalls for 2025 Ford vehicles at the end of July represented a smaller share of the company’s recalls this year than its 2024 models did last year at that time. Since 2021, Ford owners have been experiencing 25% fewer initial quality issues, and 2025 models recorded a 10% improvement in initial quality compared to last year, according to The Detroit News. Ford’s recalls this year date back to its 2015 model year lineup, and 14 affect single-digit volumes of units, showing that each order isn’t as bad as its May rearview camera glitch, announced for over one million vehicles.
Final thoughts
There’s evidence that Ford’s changes to its quality processes are making a difference with its new vehicles. Another one of these indicators includes Ford having more top finishers in their respective segments than any other manufacturer in J.D. Power’s 2025 Initial Quality Study (IQS), which surveys drivers on their first 90 days of new vehicle ownership. However, overall IQS scores for Ford and Lincoln were below the industry average. The automaker is also continuing to clean up its mess from previous years with ongoing recalls, which led to its record-breaking number of orders this year. Ford’s changes to its quality processes aim to improve warranty costs in the long term, so the company will likely continue making headlines while it experiences gradual improvement.
5 Changes Ford’s Making to Correct Recalls Costing It Billions first appeared on Autoblog on Aug 4, 2025
This story was originally reported by Autoblog on Aug 4, 2025, where it first appeared.
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