Ford achieved #1 in JD Power quality by combining AI tools with experienced human engineers ('greybeards'). The strategy saved hundreds of millions in warranty/recall costs and $1B in controllable costs without restructuring. Ford Pro subscriptions are approaching 1 million, providing recurring revenue. The company is also becoming a major domestic energy storage battery manufacturer, positioning for the data center buildout.
Yields
NDX
RUT
Oil
Metals
USD
Ford Motor Co.
3.0
Consumer Discretionary
Jim Farley
8.5
Ford went from #15 to #1 in JD Power quality. How did you achieve this?
Jim Farley
Four years of hard work focusing on long-term durability. We measure torque of every fastener, use AI vision systems, but most importantly, experienced team members pay attention to every small detail.
Matt Miller
In the age of AI supposedly killing jobs, it seems experienced human workers made the big difference.
Jim Farley
It did. Process coaches and area coaches look at last shift's quality data every morning. We work that process every moment of every day. 85% of our vehicles are made in the US by American workers beating Toyota and Hyundai.
Matt Miller
Can you quantify the financial impact of quality improvement?
Jim Farley
Hundreds of millions of improvement from lower warranty and recall costs. We also negotiated parts costs and optimized manufacturing—saving $1 billion in controllable costs without restructuring.
