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 4 percent in 2011, compared to 2010.
• Global warranty costs increased by $72 million over the last four years (from year-end 2007 to year-end 2011). Plans are in place to reduce warranty costs by more than 16 percent by 2016.

GQRS Initial Quality (Three Months in Service) Report1

2011

• In 2011, global full-year “things gone wrong” (TGW) degraded slightly due to new technologies in entertainment and communication and transmission issues. Global full-year customer satisfaction was 68 percent.
• In the U.S., the following models led their respective segments in the Global Quality Research System (GQRS) quality survey:
  • Ford Focus – TGW Leader, C car
  • Ford Expedition – Satisfaction Leader, Large Utility
  • Ford F-150 – Satisfaction Leader, Full-Size Pickup
  • Ford Super Duty – Satisfaction Leader, Heavy-Duty Pickup

In North America in 2011:

• Overall customer satisfaction in 2011 was 79 percent.
• The number of Ford, Lincoln and Mercury safety recalls increased from 9 in 2010 to 13 in 2011, while the number of affected units increased from 551,000 to 3.339 million. Three of the recalls in 2011 involved the high-volume F-Series vehicle line, accounting for 2.706 million of the total vehicles affected. One other recall, involving older Windstar minivans, accounted for 425,000 of the total vehicles recalled in 2011.2
• Warranty spending increased by 14 percent in 2011, compared to 2010.
• Ford’s customer satisfaction with dealership sales experiences improved 1 percentage point in 2011 compared to 2010 and 5 points since 2005. Customer satisfaction with vehicle service experiences remained steady from 2010 to 2011 and has increased 9 percentage points since 2005.

In Europe in 2011:

• Full-year TGW improved by 4 percent compared to 2010.
• Overall customer satisfaction increased 3 percentage points compared to 2010, to 63 percent.
• Sales satisfaction with dealer or retailer increased by 3 percentage points from 2010. Service satisfaction with dealer or retailer increased by 5 percentage points during the same period.3
• Warranty spending decreased by 21 percent compared to 2010.

In Asia Pacific and Africa (APA) in 2011:

• Full-year TGW improved by 44 percent compared to 2010.
• Full-year customer satisfaction increased by 11 percentage points compared to 2010, 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 increased by 8 percent compared to 2010.

In South America in 2011:

• Full-year TGW improved by 29 percent compared to 2010.
• Full-year customer satisfaction was unchanged in 2011 compared to 2010, at 67 percent.
• Warranty spending decreased by 1 percent compared to 2010.

Owner Loyalty

Owner loyalty is a measure of customers disposing of one Ford product and buying a new Ford product. In the U.S., owner loyalty decreased slightly in 2011 to 48.6 percent compared to 49.7 percent in 2010. In Europe, Ford owner loyalty increased to 51 percent in 2011 from 45 percent in 2010.