Global and Regional Quality Improvements

The following are key measures of our vehicle quality:

Global Warranty Spending

  • Over the last three years, Ford has reduced its warranty repair rate by 40 percent in each region around the world.
  • Global warranty spending per unit declined 13 percent in 2010, compared to 2009.
  • Global warranty costs dropped by $400 million, or 18 percent, over the last three years (from year-end 2007 to year-end 2010). Plans are in place to achieve another 8 percent improvement in warranty spending by 2015.

GQRS Initial Quality (Three Months in Service) Report

2010

  • Ford and Honda were statistically equal and had the fewest number of vehicle defects or “things gone wrong” (TGW) among full-line manufacturers in 2010.
  • Owners of Ford, Lincoln and Mercury vehicles reported 1,140 TGW per 1,000 vehicles, a 6 percent improvement over 2009 and the 6th consecutive year of improvement – a feat matched only by Nissan among full-line manufacturers.
  • Customer satisfaction rose to 82 percent, a 2 percentage-point gain over 2009 and statistically better than Toyota and Honda.

  • In the U.S., the following models led their respective segments in the GQRS quality survey:

    • Ford Fusion Hybrid – Satisfaction Leader, C/D car
    • Mercury Milan Hybrid – TGW Leader, C/D car
    • Mercury Mountaineer – TGW Leader, Medium Traditional Utility
    • Ford Expedition – Satisfaction Leader, Large Utility
    • Ford Mustang – TGW Leader, Sports Car
    • Mercury Mariner Hybrid – TGW Leader, Small Utility
    • Ford E-Series – TGW Leader, Full-Size Bus/Van
    • Ford Explorer Sport Trac – Satisfaction Leader, Medium Traditional Utility

Residual Value Improvements

  • Resale values increased by 15 percent year-over-year on Ford brand vehicles with one to five years on the road – outpacing the industry average by 2 percentage points (luxury units excluded).
  • Resale values increased by 14 percent year-over-year on Ford brand vehicles with one to three years on the road – outpacing the industry average by 3 percentage points (luxury units excluded).
  • Ford had the best residual values of any U.S. automaker in 2010 (luxury vehicles excluded), and several 2010 model year vehicles had better residual values than foreign competitors.
  • The resale value of a 2010 Ford Taurus increased 34 percent, or $5,849, after one year in service, compared to the 2009 model.
  • The resale value of a 2010 Ford Fusion V6 increased 22 percent, or $2,950, after one year in service, compared to the 2009 model.
  • Ford’s predicted resale prices are higher than Chevy, Toyota and Volkswagen in the 2011 model year, based on the Auto Lease Guide (ALG) May/June 2011 36-month residual forecast.

In North America in 2010, in addition to the progress noted above:

  • The number of Ford, Lincoln and Mercury safety recalls decreased from 8 in 2009 to 7 in 2010, while the number of affected units decreased from 4.5 million to 600,000. Note that all but 12,000 of the 4.5 million vehicles recalled in 2009 were older models (1992–2003) that were equipped with faulty Texas Instruments speed control deactivation switches. Although the data shows the majority of the vehicles equipped with these switches do not pose a significant safety risk, we recalled them to reassure customers and eliminate any future concerns.
  • Warranty spending decreased by 10 percent, compared to 2009.
  • Ford’s customer satisfaction with sales improved 2 points from 2009 and 4 points since 2005. In addition, customer satisfaction with service satisfaction improved 1 point compared to 2009 and 9 points since 2005.

In Europe in 2010:

  • Full-year TGW decreased by 12 percent compared to 2009.
  • Overall customer satisfaction increased 1 percentage point compared to 2009, to 60 percent.
  • Sales satisfaction with dealer or retailer increased by 8 percentage points from 2009. Service satisfaction with dealer or retailer increased by 4 percentage points during the same period.
  • Warranty spending decreased by 23 percent compared to 2009.

In Asia Pacific and Africa in 2010:

  • Full-year TGW decreased by 11 percent compared to 2009.
  • Full-year customer satisfaction increased by 1 percentage point compared to 2009, to 49 percent.
  • A new APA sales and service satisfaction survey was launched in late 2010. Full year 2011 data will be available in early 2012.
  • Warranty spending decreased by 17 percent compared to 2009.

In South America in 2010:

  • Full-year TGW improved by 4 percent compared to 2009.
  • Full-year customer satisfaction decreased by 1 percentage point compared to 2009, to 67 percent.
  • Warranty spending decreased by 10 percent compared to 2009.

Owner Loyalty

Owner loyalty is a measure of customers disposing of one Ford product and buying a new Ford product. In the U.S., Ford achieved the highest increase in owner loyalty of any automotive company – an increase to 51.6 percent in 2010 compared to 42.1 percent in 2009. In Europe, Ford owner loyalty decreased from 49 percent in 2009 to 45 percent in 2010.

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