Ford's Warranty Repair Costs Decline Further in 2008 as Quality Continues to Improve
February 02 2009 - 1:04PM
PR Newswire (US)
- Ford has reduced its worldwide warranty repairs costs by $1.2
billion in the past two years. DEARBORN, Mich., Feb. 2
/PRNewswire-FirstCall/ -- Ford Motor Company's (NYSE:F) steady
vehicle quality improvement in recent years is beginning to
translate into significant savings for the company and far fewer
trips by customers to the repair shop. In the past two years alone,
Ford has reduced its warranty repairs costs by $1.2 billion,
according to the latest company figures. These savings can be
attributed to four straight years of quality improvements on Ford,
Lincoln and Mercury vehicles. Ford's initial quality is now in a
virtual tie with Honda-Acura and Toyota-Lexus-Scion for the 2008
model year, according to the latest U.S. Global Quality Research
System (GQRS) study. Ford strives to be best in class in every
phase of vehicle development - from design to pre-delivery -
internal measures continue to show the company is making
significant quality strides. For example: -- The warranty repair
rate for Ford, Lincoln and Mercury vehicles in the United States is
now almost 50 percent lower than it was in 2004. -- Ford F-Series
Super Duty and Lincoln Mark LT rank atop their respective segments
with fewest "things gone wrong" (TGW) and in customer satisfaction.
-- Ford Mustang GT500 had the least number of TGWs among sports
cars. -- Overall, 18 of 24 Ford domestic brand vehicles posted TGW
improvements. "Ford is following a set of standardized processes
around the world in product development, manufacturing and
purchasing with a discipline this company has never seen," said
Bennie Fowler, Ford group vice president, Global Quality. Continued
Improvements The drive to improve quality is most evident during a
new-model launch. Since 2005, each new model from Ford has
consistently delivered better quality - as measured by warranty
rates and things-gone-wrong metrics - than the models they
replaced. "The last 24 months have revealed some of our best
quality results," said Curt Yun, director, Global Warranty. "Our
new models have been achieving continuously declining warranty
repair rates and lower warranty costs, as a direct result of our
overall quality improvements." In the U.S., for example, owners of
Ford, Lincoln and Mercury vehicles have reported fewer concerns at
three years in service for each of the past five years, according
to the Global Quality Research System (GQRS) survey, compiled for
Ford by the research firm RDA Group. "We've reached the point where
our initial quality is second to none among the full-line
manufacturers," said Fowler. "We expect that high quality to be
reflected in future high-mileage surveys as our new models age."
Built-in Design Quality Ford's Global Product Development System
ensures quality is built-in early in the process. It starts with
the company's commitment to develop and implement consistent
standardized engineering processes. By fully utilizing Computer
Assisted Design toolsets, Ford is signing off on all aspects of its
designs even before the first prototype is built. Ford's design and
engineering analysis processes make it possible for problems that
previously might not have surfaced until launch to be flagged and
corrected in the virtual world. Ford uses cutting edge virtual
tools to verify up to 40,000 design standards in its Virtual
Engineer Lab. Virtual technology also is used to confirm that the
product can be manufactured with quality in the assembly plant for
which it is slated. Manufacturing Quality Process Ford also
provides assembly plant teams the necessary tools to deliver
quality in the manufacturing process. For example, the company's
Quality Operating System (QOS) is critical for identifying and
correcting problems within the manufacturing facilities. QOS is
implemented in each plant by Variability Reduction Teams (VRT) -
cross-functional groups of engineers, plant management and product
specialists, including the company's most skilled problem solvers
who've been trained through Six Sigma. Each team is assigned to one
of 12 vehicle subsystems crucial to customer satisfaction, such as
paint or body interior, and examines every detail, looking for
imperfections so slight that even the untrained eye, or ear, could
not detect them. For example, Ford's 2010 Taurus was subjected to
rigorous testing for squeaks and rattles at each design phase.
Every inch of the vehicle was scrutinized for unwanted noise from
the outside in, down to the sound of the Easy Fuel(TM) Capless Fuel
Filler door when it's closed. Another example includes the
development of Ford's new fuel-efficient 3.5- liter EcoBoost V-6
engine. By the time the first twin-turbocharged, direct injection
engine is decked to a 2010 Lincoln MKS this summer at the Chicago
Assembly Plant, the equivalent of more than one-million grueling
test miles will have been logged by EcoBoost prototypes. Ford also
uses a process called Early Claims Binning to help streamline
communications about potential quality issues between plants and
dealerships. Warranty claims are fed to the assembly plant every
day where the issue is dissected and either traced back to the
installation process and addressed on-site or fed back to the
design engineer for resolution in design. Customer-driven Quality
Ford's commitment to deliver the best quality possible for its
customers is unwavering and the company is committed to pushing its
quality levels even higher. As Ford's newest vehicles hit the road,
company officials expect warranty claims to continue their downward
trend. "I see the recent $1.2 billion in worldwide warranty cost
savings as a compelling reason to continue down this path," Yun
said. "Instead of setting aside those funds to fix cars, we'd much
rather invest it in exciting product programs for our customers."
Ford's commitment to world-class quality extends beyond preventing
things that go wrong. Customer-driven product features, such as
fuel economy, craftsmanship, and quiet interiors are designed into
the vehicle to deliver an exceptional and affordable ownership
experience. "This is One Ford at its best," said Fowler. "It has
taken thousands of dedicated people, from the plant floor to the
executive suite, working together to strive for quality every day."
About Ford Motor Company Ford Motor Company, a global automotive
industry leader based in Dearborn, Mich., manufactures or
distributes automobiles across six continents. With about 213,000
employees and about 90 plants worldwide, the company's wholly owned
automotive brands include Ford, Lincoln, Mercury and Volvo. The
company provides financial services through Ford Motor Credit
Company. For more information regarding Ford's products, please
visit http://www.ford.com/. DATASOURCE: Ford Motor Company CONTACT:
Kristen Kinley, Ford Motor Company, +1-313-337-2786,
+1-313-283-2957 (cell), Web site: http://www.ford.com/
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