Ford Restructures Leadership to Improve Quality

Ford Motor Company is restructuring its leadership by appointing a new head of quality to address significant recall issues and soaring warranty costs. Jim Baumbick, the current quality chief, will transition to oversee vehicle programs, including electric vehicle initiatives, while the identity of his successor remains undisclosed. The changes aim to improve collaboration and efficiency within teams as Ford seeks to enhance vehicle quality amidst a backdrop of 62 recalls in 2024, the highest in the industry. CEO Jim Farley has made quality improvement a priority since taking over in 2020, emphasizing the need for better production practices to identify issues earlier. This year has been particularly challenging, with Ford facing a $165 million penalty related to delayed recalls and warranty costs surging by $800 million in the second quarter compared to the previous year. As Ford navigates these challenges, its stock has dropped 17% in 2024, contrasting sharply with General Motors' 43% gain.