Global and Regional Quality Improvements

The following are key measures of our vehicle quality:

Global Warranty Spending

• Global warranty spending per unit declined 19 percent in 2012, compared to 2011.
• Global warranty costs decreased by $27 million over the last four years (from year-end 2008 to year-end 2012). Warranty costs are expected to increase by 7.5 percent by 2017.

GQRS Initial Quality (Three Months in Service) Report 2012

• In 2012, global full-year “things gone wrong” (TGW) improved to 1,373 per 1,000 vehicles from 1,447 in 2011. Global full-year customer satisfaction also improved to 72 percent in 2012, up from 68 percent in 2011.
• In the U.S., the following models led their respective segments in the Global Quality Research System (GQRS) quality survey:
  • Ford Mustang – TGW Leader, Sports Car
  • Ford Taurus – TGW Leader, D/E Car
  • Ford E-Series Van – TGW and Satisfaction Leader, Full-Size Bus/Van
  • Ford Super Duty – Satisfaction Leader, Heavy-Duty Pickup

In North America in 2012:

• Overall customer satisfaction in 2012 was 79 percent.
• The number of Ford Motor Company safety recalls increased from 13 in 2011 to 24 in 2012; however, the number of affected units decreased from 3.3 million to 1.4 million. Three of the 2012 calendar-year safety recalls were reported by the U.S. National Highway Traffic Safety Administration (NHTSA) in January 2012, although they were approved by the Company in December 2011. Additionally, three other 2012 calendar-year safety recalls were supplements to safety recalls that were originally approved by the Company in 2010 and 2011.
• Warranty spending decreased by 20 percent in 2012, compared to 2011.
• Ford’s customer satisfaction with dealership sales experiences improved 2 points in 2012 compared to 2011 and 6 points since 2006. Customer satisfaction with vehicle service experiences improved by 3 points from 2011 to 2012 and has increased 8 points since 2006.

In Europe in 2012:

• Full-year TGW improved by 10 percent compared to 2011.
• Overall customer satisfaction increased 6 percentage points compared to 2011.
• Sales satisfaction with dealer or retailer increased by 4.5 points compared to 2011. Service satisfaction with dealer or retailer increased by 7.5 points during the same period.¹
• Warranty spending decreased by 8 percent compared to 2011.

In Asia Pacific and Africa in 2012:

• Full-year TGW improved by 21 percent compared to 2011.
• Full-year customer satisfaction increased by 8 percentage points compared to 2011.
• Sales satisfaction with dealer or retailer improved by 3 points from 2011 to 2012. Service satisfaction with dealer or retailer improved by 7 points from 2011 to 2012.
• Warranty spending decreased by 15 percent compared to 2011.

In South America in 2012:

• Full-year TGW improved by 6 percent compared to 2011.
• Full-year customer satisfaction decreased 1 percentage point in 2012 to 65 percent.
• Warranty spending increased by 9 percent compared to 2011.

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 47.7 percent compared to 48.6 percent in 2011. In Europe, Ford owner loyalty increased to 52 percent in 2012 from 51 percent in 2011.