Ford Motor Co.’s been fighting what appears to be a losing battle with quality issues — and the massive costs that come with them — for the past several years. CEO Jim Farley’s acknowledged the problem and is now making moves to improve it. He’s moving the current quality chief to a new role and hiring a new one.
Ford CEO Jim Farley has been talking about improving quality since he took on the job in 2020.
It’s just that no one knows who it will be. It’s clear that it won’t be Jim Baumbick, who held the job since late 2022. He’s moving from his role as Vice President, Product Development Operations and Quality to head up the company’s electric vehicle programs. No formal title was revealed nor was his replacement.
Ford employees were informed, according to Reuters, via email last week about Baumbick’s move.
Big problems
Since his ascension to the role of CEO in October 2020, Farley’s talked about improving the company’s quality issues. However, talking about it and making it happen haven’t been a simple task.
Ford’s lead the industry in recalls since 2021.
Ford’s implemented new practices and added quality employees to improve the results, but the results have been mixed — at best. Ford has led the industry in recalls since 2021 or for all of Farley’s tenure. He’s repeatedly expressed concern, frustration and optimism about the company’s quality issues.
The quality issues came to a head last month when the National Highway Traffic Safety Administration smacked the automaker with a $165 million fine — the second highest ever levied by NHTSA — after the agency determined the automaker failed to follow guidelines, both dragging their feet on several recalls while also failing to keep the agency in the loop, as required by law.
Ford has been targeted by two new investigations examining whether it mishandled other known safety defects. That includes the potential for nearly 460,000 Bronco SUVs and Maverick pickups to unexpectedly lose power, while the second issue involves more than 110,000 Ford Expeditions that could be equipped with faulty seatbelts.
More Ford News
- Ford Paying Near-Record Fine for Mishandled Recall
- Ford Raises “Significant” Safety Concerns Over Fuel Leak
- Ford Shifts EV Plans
Dealing with the problem
Ford was charged the second-largest fine in NHTSA’s history due to recall and quality issues.
Of the $165 million in fines levied by NHTSA, $55 million is being deferred, Ford agreeing to invest that in efforts to better control its safety issues.
Among other things, the automaker agreed to bring in an independent outside monitor who will oversee Ford’s response to safety issues over the next three years.
Under the order, an independent third party will oversee the automaker’s recall performance obligations for at least three years, and Ford has to cooperate with the monitor.
“Wide-ranging enhancements are already underway with more to come, including advanced data analytics, a new in-house testing facility, among other capabilities,” Ford said in its statement.
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