Ford is reducing the warranty costs with 1.2b Dollars

Posted on Thursday, 5 February 2009 , 12:02:46 byEmil

Filed under fordcostwarrantypricereduceFord

Ford is reducing the warranty costs with 1.2b Dollars

With all-new auto sales dropping drastically, virtually every carmaker is looking now for ways of cutting cost. And Ford isn`t an exception, having the Blue Oval that takes aim at the warranty prices ensuring a bottom line that`s healthier.

Ford lost over 5 billion Dollars during the 4th quarter of last year, its efforts on improving quality shows improvements on the financial books of the the company. Ford reported, it wiped 1.2 billion Dollars in warranty prices off all the books from two years ago. The improvements exists even as Ford upped the warranty coverage from three years/36,000 miles to five years/60,000 miles.

'The last 24 months have revealed some of our best quality results' said Curt Yun, the director of Global Warranty. 'Our new models have been achieving continuously declining warranty repair rates and lower warranty costs, as a direct result of our overall quality improvements'. In addition to the lower warranty prices, Ford saw also significant change in ‘things gone wrong’, or TGW. The Ford Mustang GT500 and Ford F-150 topped the respective TGW segments, having 18 of the 24 domestic Ford units showing TGW improvements.

Ford has seen all the repair rate action for Ford, Mercury and Lincoln cars decline by almost 50 % since 2004, showing the carmaker is again dedicated on making quality products of great quality.