Ford Motor Company (NYSE:F) saw its shares edge higher on Friday, rising 0.6% to $14.195 in afternoon trading, as the automaker received top marks in J.D. Power's latest initial quality study for mass-market brands. However, the modest gain came amid ongoing investor caution over the company's industry-leading recall tally and persistent warranty risks.
The J.D. Power 2026 U.S. Initial Quality Study ranked Ford first among mass-market brands with a score of 152 problems per 100 vehicles, outperforming the mass-market average of 177 and the industry average of 175. Ford also earned segment wins for the F-150, Mustang, and Super Duty models. Frank Hanley, senior director of auto benchmarking at J.D. Power, noted that “as more technology is introduced into vehicles, keeping the experience simple matters more than ever,” highlighting that infotainment was the only area with more problems year-over-year, particularly with Android Auto and Apple CarPlay connectivity.
Ford CEO Jim Farley described the quality score as “a culmination of a lot of hard work” by Ford teams in North America. Despite this accolade, Ford has faced 51 recalls so far this year, the highest in the industry, compared to Stellantis NV (NYSE:STLA) with 19 recalls, according to Reuters. The company also remains under a consent order related to delayed recalls involving faulty rearview cameras.
Ford’s stock performance on Friday outpaced a flat S&P 500, as represented by the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), but trailed Tesla Inc (NASDAQ:TSLA), which climbed 2.9%. General Motors Company (NYSE:GM) added 0.3%. Trading volume for Ford reached 31.7 million shares. The stock had gained 1.95% on Thursday to $14.11, ending a two-day losing streak, but remains down 20.64% from its 52-week high of $17.78 set on May 29.
Ford executives have acknowledged challenges in quality repairs, with Charles Poon, Ford’s vice president of vehicle hardware engineering, stating that the company had relied too heavily on artificial intelligence and automation in the past before bringing back more experienced technical staff. “Artificial intelligence is a fantastic tool, but it’s only as good as the information you use to train it,” Poon said.
Financially, Ford expects over $1 billion in material and warranty savings this year, following $1.5 billion in cost reductions in 2025. The company’s first-quarter earnings showed strong performance from its traditional segments: Ford Blue posted $1.9 billion in EBIT, and Ford Pro contributed $1.7 billion. However, Ford Model e recorded a $777 million loss, with full-year losses projected between $4.0 billion and $4.5 billion. Ford Pro’s EBIT is forecast at $6.5 billion to $7.5 billion.
CFO Sherry House said in April that Ford nudged its guidance higher by $1 billion, primarily from software and services. Ford Pro paid software subscriptions rose 30% year-over-year to 879,000. The company expects U.S. industry sales for 2026 at a 16.0 to 16.5 million SAAR and projects flat pricing across the sector, factoring in roughly $2 billion in higher commodity costs and around $1 billion in continued tariffs, offset by a $1 billion net gain from the Novelis recovery.
Despite the quality recognition, Ford’s stock trades with a dividend yield of 4.23% and has no trailing P/E due to negative earnings per share. Investors remain focused on the company’s ability to translate quality improvements into sustained financial performance and reduced recall risks.
