Ford has hit a major quality milestone after years of struggling with recalls and customer complaints. The Ford brand was named the top mass-market brand in the U.S. in J.D. Power’s initial quality ranking, a result CEO Jim Farley says marks a turning point for the company.
Farley told CNBC in an exclusive interview that Ford has learned from past mistakes and plans to use those lessons to launch a wave of new vehicles without defects in the coming years. “Our best days are in front of us as we continue to execute this quality turnaround for our investors, for employees, for our customers,” Farley said. He added that the company will roll out an entirely new vehicle lineup across North America within a couple of years, and every model needs to launch correctly, the first time.
That will not be easy. New vehicle launches involving software-defined systems and electrified powertrains are complicated, and a single defect can affect an entire product line. Ford has spent much of the past decade leading the industry in recalls, a record that has hurt earnings, damaged customer trust, and dented the company’s reputation.
To fix the problem, Ford restructured how it develops and builds vehicles. The company has hired 350 technical specialists since 2023, increased routine quality meetings, worked more closely with suppliers, and added more testing throughout the development process. Ford also changed how it pays executives, tying bonuses more directly to quality results, and brought in new leaders from Whirlpool and Johnson Controls to strengthen its quality team.
The changes are already showing up in the numbers. Ford cut warranty and materials costs by 1.5 billion dollars in 2025, after those costs peaked at 4.8 billion dollars in 2023. The company is aiming for further reductions in 2026. Barclays analyst Dan Levy said in a May note that Ford appears to have turned the corner on warranty costs, though he added that more improvement is still needed. Ford’s stock rose 2 percent after the J.D. Power announcement, marking one of its best trading days of the month.
Ford still faces real challenges. The company has issued dozens of recalls in 2026 alone, following a record year for recalls in 2025. Farley’s plan now hinges on turning early quality gains into a long-term track record as the company prepares to launch its next generation of vehicles.
Whether Ford can sustain these gains through its upcoming vehicle launches will determine if its recent quality improvements translate into lasting customer confidence and stronger financial performance.
