Ford Motor achieved a quality milestone last week when the Ford brand was named the top mass-market brand in the U.S. in J.D. Power's initial quality ranking released on June 25. CEO Jim Farley told CNBC the automaker has learned from past mistakes as it targets flawless launches of new vehicles in coming years. The milestone comes after Ford led the U.S. in vehicle recalls, issuing 53 recalls for more than 12 million vehicles so far this year following an industry record of 153 recalls covering 13 million cars and trucks in 2025. The company reduced warranty and materials costs by $1.5 billion in 2025 after warranty costs reached $4.8 billion in 2023. Farley stated the quality turnaround period is ending as Ford prepares to launch new vehicles across its entire North America range.
Ford Achieves Top J.D. Power Initial Quality Ranking
The Ford brand was named the top mass-market brand in the U.S. in J.D. Power's initial quality ranking on June 25. Ford ranked third among all brands, behind luxury makers Porsche and Hyundai's Genesis, and ahead of Toyota's Lexus brand at No. 4. This is the first time since 2010 that Ford has led mainstream brands in the study, which assesses expected new vehicle quality based on owner-reported problems within the first 90 days of ownership. Ford ranked No. 23 in 2023.
After the news was released on June 25, Ford stock rose 2%, making it the company's second-best trading day of the month. Ford improved in nearly every vehicle category measured by J.D. Power in initial quality, including software, infotainment and power trains.
Farley told CNBC during an exclusive interview that Ford's best days are ahead as the company continues to execute the quality turnaround for investors, employees and customers. He stated the company will have all new vehicles across its entire North America range in a couple of years and must launch all those perfectly.
Ford Reduces Warranty Costs After Record Recall Years
Ford issued 53 recalls for more than 12 million vehicles so far this year after an industry record of 153 recalls covering 13 million cars and trucks in 2025. The automaker this week added to its recall total by recalling 741,195 SUVs and F-150 pickup trucks that varied in age from the 2018 to 2021 model years.
Ford reduced warranty and materials costs by $1.5 billion in 2025, when adjusted for volume and mix, and is targeting an additional reduction in warranty and material costs. This follows the company's warranty costs reaching a high of $4.8 billion in 2023.
Barclays analyst Dan Levy said in a May 15 investor note that while warranty costs had been a clear drag to earnings over the past several years, Ford appears to have turned the corner, citing four consecutive quarters of year-over-year warranty benefits. Levy stated further improvement will still be needed.
Farley declined to predict when Ford, which has led recalls in the U.S. since 2024, will not hold that position anymore, saying he cannot control what happens in older-model vehicles as well as competitors' efforts in quality. He stated everything the company is doing will lead to a massive reduction in future recalls of current and future products.
Ford Implements Structural Quality Improvements
Ford implemented a new organizational structure and has hired 350 technical specialists since 2023. Farley's quality efforts have focused on finding any issues as soon as possible in a vehicle's development, which he said meant structurally rearranging the company's processes.
The company held more routine meetings, encouraged closer collaboration with suppliers and rolled out more rigorous testing during the entire vehicle development process. Ford also changed its bonus structure, tying executive compensation more closely to quality metrics, including those for new executives from Whirlpool and Johnson Controls who brought additional quality expertise.
After Ford rolled out new artificial intelligence tools to detect problems, the company had to bring back veteran engineers to help guide younger staff members and to better train its AI models. Farley stated that by bringing those people back, that complements all the AI technology.
Ford and its luxury Lincoln brand respectively ranked 18th and 19th in J.D. Power's U.S. Vehicle Dependability Study released in February, well below the industry average. That study looks at vehicles over a longer period. Farley stated Ford needs to continue trying to lower its warranty costs and future recalls as well as improve its overall quality reputation, including long-term durability.
FAQ
What ranking did Ford achieve in J.D. Power's initial quality study?
Ford brand was named the top mass-market brand in the U.S. in J.D. Power's initial quality ranking released on June 25. Ford ranked third among all brands, behind Porsche and Genesis, and ahead of Lexus. This is the first time since 2010 that Ford has led mainstream brands in the study.
How many recalls has Ford issued this year?
Ford issued 53 recalls for more than 12 million vehicles so far this year. This follows an industry record of 153 recalls covering 13 million cars and trucks in 2025. The automaker this week recalled 741,195 SUVs and F-150 pickup trucks from the 2018 to 2021 model years.
What steps has Ford taken to improve quality?
Ford implemented a new organizational structure and hired 350 technical specialists since 2023. The company changed its bonus structure to tie executive compensation to quality metrics, held more routine meetings, encouraged closer collaboration with suppliers, and rolled out more rigorous testing during vehicle development. Ford reduced warranty and materials costs by $1.5 billion in 2025 after warranty costs reached $4.8 billion in 2023.
