Part 8/10:
In addition to its struggles with EVs, Ford is grappling with another crisis: the quality of its vehicles. Recent years have seen an alarming rise in recall numbers, with over 2 million vehicles affected by various issues in 2024 alone. The company was even fined $165 million for poorly handling vehicle recalls, raising concerns among investors.
The costs associated with warranties alone swelled from $4.8 billion in 2014 to $11.5 billion in 2023, leaving the company cash-strapped while heightening investor distrust. The infamous Ford F-Series, while a bestseller, is overshadowed by quality issues in Ford's newer models. Analysts now question whether investors can maintain confidence as warranty problems persist, with costs amounting to $25.5 million each day.