Ford is grappling with significant financial pressures due to a surge in recall and warranty costs, which have reached $2.3 billion in the past three months. This marks an increase of $800 million from the first quarter, translating to $25.5 million per day.
According to Bloomberg, Ford is attributing the rise to vehicles produced during the pandemic, notably the 2021 model year, which suffered from supply chain issues and government shutdowns. Despite Ford's efforts to improve product quality–evidenced by 30% fewer recalls affecting customers in 2023 compared to a disastrous 2022–the immediate financial impact remains substantial.
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