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  #1  
Old 12-02-2007, 02:21 PM
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Default Better quality may save Ford $300M

Quote, originally posted by Detroit News »
Ford Motor Co. may save as much as $300 million on warranty costs next year because of improved design standards and manufacturing technology, the company's top quality executive said Friday.

That will be in addition to $900 million in expenses Ford trimmed this year because of fewer dealer repairs after cars and trucks leave the factory, Vice President Bennie Fowler said in an interview.

"The numbers that we're targeting, probably another $200 to $300 million, would be in line, certainly in line with the substantial improvement we made this year," Fowler said of prospects for savings next year.

Ford is trying to win back buyers and end 11 consecutive years of U.S. market share declines. A survey commissioned by the Dearborn-based company found that its five-year effort to improve quality was cutting problems to near the level of Toyota Motor Corp., the industry's perceived leader.

The survey of 60,611 new Ford car or truck owners from September 2006 through February 2007 found 1,427 reports of "things gone wrong" per 1,000 vehicles, 159 fewer than last year, Ford said in June.

The survey, by RDA Group in Bloomfield Hills, found Toyota owners reported 1,362 problems per 1,000 vehicles.

In June, Ford had four of the top 10 brands in the annual initial-quality survey by J.D. Power & Associates. Ford's Lincoln brand ranked third, with Jaguar sixth, Mercury eighth and the namesake Ford brand 10th.

The warranty savings, now being used to offset losses after a record $12.6 billion shortfall last year, will eventually allow increased spending on future new models, Fowler said.

"It has improved our earnings quite substantially," Fowler said.


http://www.detnews.com/apps/pb.../1148
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  #2  
Old 12-02-2007, 03:52 PM
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Thats a lot of friekin' money saved just because of improved quality. Certainly shows how much their past bad quality has cost the domestics.
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Old 12-02-2007, 05:07 PM
FRDesign FRDesign is offline
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Good quality pays off. It maybe cheaper to use cheap materials and stuff, but once they break, you have to pay for em again.

So good stuff, is less repairs.


Good job ford.

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Old 12-03-2007, 05:49 AM
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One of the traditional differences between American car makers and imports has been with respect to options. The imports usually group the options into packages whereas the Americans allows more of a pick and choose kind of thing which introduces variables that could not have been fully tested in prototypes. With pickups being especially configurable, I would wonder how much of Ford's warranty woes come with their largest selling product.
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Old 12-04-2007, 09:08 AM
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Good. Now can we take most Australian Ford dealers back to the manufacturer for a warantee claim? They are all arrogant, pathetic, and have wrecked Fords Image.

Imagine how much money could be saved with appropriate dealers.

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Old 12-08-2007, 07:34 AM
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yep, this is how it usually goes down. Someone in the company finds a way to save $1 on a lower quality part, multiply that amound by mass production, and it becomes very appealing. But then the dealers suffer when having to repair it and it all pretty much strikes back at the source.

Bold move, Ford!
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Old 12-08-2007, 07:50 AM
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I may just be misunderstanding, but you're talking about the
process that led to teh crappy quality in the first place, right?
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Old 12-08-2007, 04:43 PM
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Quote:
Originally Posted by JBlair View Post
I may just be misunderstanding, but you're talking about the
process that led to teh crappy quality in the first place, right?
I believe you're right. Typical of Ford is also to have a component that is both defective and dangerous and keep making it. Did they really have no idea that the 15 MILLION ignition switches they installed over a number of years were defective? Were there no reports of fires? There were numerous issues with the twin I beam suspension yet they kept building it and building it and building it and even threw it into the Ranger's original clean sheet design.
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Old 12-08-2007, 06:21 PM
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Quote:
Originally Posted by JBlair View Post
I may just be misunderstanding, but you're talking about the
process that led to teh crappy quality in the first place, right?
Yes.
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