Customer Satisfaction and Quality

Quality and customer satisfaction together are the central mission of all of our employees. We track our progress in achieving this mission through a combination of internal and external measurements that assess how we are doing and where we can improve. We assess quality in a number of ways. The Global Quality Research System, which tracks "things gone wrong," is our primary quality survey.1 The GQRS survey is implemented for us by the RDA Group, a market research and consulting firm based in Bloomfield Hills, Michigan. We also subscribe to J.D. Power and Associates' Initial Quality Survey and APEAL study. We track warranty claims and costs internally. In 2008 and 2009, we saw an improvement in both the internal and external measurements of quality. By several measures, our quality is now competitive with the highest-rated brands. Global and regional quality improvements are detailed below.

Global and Regional Quality Improvements

Global Warranty Spending

• Global warranty spending per unit declined 5 percent in 2008, compared to 2007.
• Global warranty costs dropped by $1.2 billion over the 24 months from year end 2006 to year end 2008. Plans are in place to achieve another 26 percent improvement in warranty spending by 2012.

GQRS Initial Quality (Three Months in Service) Report

• 2009
  • In the first quarter of 2009, Ford, Lincoln and Mercury vehicles' "things gone wrong" fell by 5 percent, to a level that is significantly better than Honda and statistically equal to Toyota.
• 2008
  • In 2008, "things gone wrong" levels decreased for the fourth straight year, and Ford brand quality increased by 8 percent.
  • In April 2008, the GQRS showed Ford in a statistical dead heat with Toyota and Honda for initial-quality ratings.

GQRS Durability (Three Years in Service) Report

• 2008
  • The 2008 durability survey, which tests vehicles after three years in service, tested 2005 model year vehicles. The top non-luxury brands were Toyota, Honda and Ford, with a difference of only 0.7 problems per vehicle between Toyota and Ford.
  • Ford Motor Company vehicles led their segments in the lowest number of "things gone wrong" after three years in service:
    • Crown Victoria – Large Car
    • Ranger – Compact Pickup
    • E-Series – Full-Size Bus/Van
    • Navigator – Large Premium SUV

In the United States:

• "Things gone wrong" improved by 35 percent between 2002 and 2008, and by 8.5 percent in 2008 alone.
• High time in service quality improved 16 percent from 2004 to 2008.
• The number of Ford, Lincoln and Mercury safety recalls decreased from 15 in 2007 to 11 in 2008 (a 27 percent drop), while the number of affected units dropped from more than 5.5 million to 1.6 million.
• Warranty spending decreased by 7 percent in 2008, compared to 2007.
• In the first quarter of 2009, Ford, Lincoln and Mercury customer satisfaction with vehicle quality improved by two percentage points to 79 percent, which puts Ford's domestic brands in a tie with Toyota and Honda for industry leadership in this area.
• In 2008, overall customer satisfaction improved by 1 percent to 77 percent.
• Customer satisfaction with Ford Division sales and service in 2008 improved by four and 13 percentage points respectively since 2002.

In Europe:

• "Things gone wrong" improved by 32 percent from 2003 to 2008, and improved by 4 percent in 2008 alone, to reach its lowest level ever. Volvo's "things gone wrong" registered a decrease of 4 percent in 2008, compared to 2007.
• Warranty spending decreased by 7 percent in 2008, compared to 2007.
• Overall customer satisfaction improved by two percentage points in 2008.
• Sales and service satisfaction improved by eight and 12 percentage points, respectively, between 2001 and 2008.

In Asia Pacific:

• The region logged 1,557 "things gone wrong" in 2008, compared to 1,565 in 2007.
• Customer satisfaction in 2008 was at 78 percent, compared to 71 percent in 2007.
• Warranty spending increased by 4 percent in 2008.

In South America:

• "Things gone wrong" improved 6 percent in 2008, compared to 2007.
• Warranty spending increased by 7 percent during 2008.
• Customer satisfaction improved by one percentage point in 2008.

Owner Loyalty

Owner loyalty is a measure of customers disposing of one Ford product and buying a new Ford product. In the United States, Ford owner loyalty decreased from 42.3 percent in 2007 to 41.6 percent in 2008. In Europe, Ford owner loyalty increased from 50 percent in 2007 to 53 percent in 2008.