Financially a full recall just doesn't make sense unless Ford already believes a huge percentage will fail.My
Engine was built nov 15 why don’t ford issue a recall so we can get our vehicles in instead of breaking down on the road and not only blowing the engine but destroying 2 turbos in the process. Seems it would be cheaper if they just issued the recall
By definition, there are 2 orders of magnitude difference at 1% replacement (fixing broken) vs. 100 % replacement (recall). This is just an example - no one knows the true failure percentage and we won't for a long time.
I'm going to use fictional numbers here so I don't get crucified - just an exercise. And if you don't like these back of the envelop exercises please just keep scrolling...
Let's assume 50,000 engines at a cost of $5K parts and labor (cost to Ford - not price to you - and just an estimate)
recall all: 50,000 x $5K = $250,000,000
fix 1% when they break: 500 x $5K = $2,500,000
Of course they have to value in lots of other stuff (value of human loss if a safety issue, reputation, loss of new customers, etc.).
Better question was asked earlier: would they just recall the valves? Probably not financially competitive with just replacing 1% of all engines, but maybe a good hedge for them. I don't know what those parts cost but assuming intake, 2 per cylinder, 12 overall and probably 2-3 hours of labor? Someone who has done this repair would have to comment if that's a reasonable estimate.
12 valves at $100 apiece = $1200
3 hours labor ($125 x 3 = $375)
$1575 per vehicle x 50,000 = $78,750,000
All numbers are just for perspective since so many people are clamoring for a recall. I think it all comes down to how much liability is on the road for Ford.
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