DETROIT, June 25, 2026 – Ford Motor (NYSE:F) posted a sharp improvement in its initial vehicle quality score, but the automaker continues to grapple with a massive warranty liability that overshadows the progress. According to J.D. Power’s 2026 U.S. Initial Quality Study, Ford reduced its problems per 100 vehicles to 152, a 41-point improvement from 193 last year. That gain far exceeded the industry average of 17 points, marking the largest year-over-year quality leap for new vehicles since 1997.
Quality Metrics Show Promise, but Warranty Costs Loom
Ford’s quality score placed it at the top among mass-market brands, ahead of Nissan and Buick. Porsche led all brands with just 138 problems per 100 vehicles. However, the rosy picture is tempered by the company’s ongoing financial exposure to warranty and field-service costs, which stood at $17.028 billion as of March 31, down only modestly from $17.190 billion at the start of the quarter. New warranty provisions in Q1 totaled $1.374 billion, a decline from $1.689 billion a year ago, while actual warranty payments rose to $1.487 billion from $1.457 billion.
Ford CEO Jim Farley, speaking at a press conference, called the quality improvement “a culmination of a lot of hard work by thousands of our team members across North America,” according to Reuters. He has long framed quality as a margin issue, not just a branding concern. The company warned in its latest quarterly filing that potential costs above its current reserves could reach $2.0 billion, meaning the J.D. Power survey must translate into fewer actual repairs to deliver real financial relief.
Recalls Remain a Persistent Challenge
Despite the quality gains, Ford has conducted 51 recalls in the U.S. this year, the most in the industry. Stellantis (NYSE:STLA) has 19, while General Motors (NYSE:GM) has not disclosed its count. Ford has topped the recall list every year since 2020, when Farley became CEO and made quality a central focus. The company is also operating under a three-year safety consent order from the National Highway Traffic Safety Administration, imposed in 2024 after Ford failed to recall vehicles with faulty rearview cameras in a timely manner. The order includes a $165 million civil penalty and requires a review of recalls from the past three years.
Chief Operating Officer Kumar Galhotra told reporters that most recall volume stems from older models, and that newer vehicles, particularly those built after 2020, are showing significant improvement. Ford has attributed past quality lapses to an overreliance on automation and artificial intelligence. Charles Poon, Ford’s vice president of vehicle hardware engineering, told The Verge that the company had counted too heavily on AI and design rule changes to lift quality. In response, Ford has hired, promoted, or brought back over 350 veteran engineers, established a 40-person software quality group, and deployed more than 100,000 AI-powered tests.
Galhotra emphasized a shift away from a “find-and-fix mentality,” aiming to catch problems earlier in the development process. Poon added that experienced engineers now help identify issues “before they creep into the system.”
Infotainment Remains a Weak Spot
J.D. Power’s data show that nine of 10 quality categories improved, but infotainment remains a significant headache. Mass-market brands reported 44.4 infotainment problems per 100 vehicles, while premium brands had 38.3. Issues with Android Auto (Alphabet, NASDAQ:GOOGL) and CarPlay (Apple, NASDAQ:AAPL) contributed 1.4 problems per 100 vehicles, making connectivity systems the top source of owner frustration. Among owners who reported distracted-driving problems, 46% blamed infotainment or touchscreens, compared to just 18% who cited driver-assistance alerts.
“As more technology is introduced into vehicles, keeping the experience simple matters more than ever,” said Frank Hanley, senior director of auto benchmarking at J.D. Power.
Market Reaction
Ford shares rose 39.5 cents to $14.235 in morning trading, a gain of about 2.8%. General Motors added $1.21 to $80.16, Stellantis edged up 3.5 cents to $5.875, and Tesla (NASDAQ:TSLA) gained 59 cents to $376.12. The broader market also saw gains, with the S&P 500 up 0.3%.
