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Ford Quality CEO Jim Farley Explains Detroit Free Press

NORCALGXP

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Ford CEO Jim Farley and company chair Bill Ford fielded questions from shareholders ranging from concerns about quality to stock price and future products during the virtual annual shareholders meeting Thursday.

Perhaps the question most associated with the financial bottom line: "Quality has been an issue for the past two years. What steps have been taken to address this issue?"

https://www.freep.com/story/money/c...holders-meeting-questions-farley/70206889007/
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Ford can't spell QC and there is some kind of expectation around fixing it.
 

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I used to work at AAP which consistently had the best quality of any ford plant. In 2006 it was shut down and oakville assembly (the worst rated ford plant for quality) got the new vehicle. Why? The Canadian government thru a huge tax incentive to keep it open. Ford has always chased the dollar. They’ll push cost cutting then flip back to pushing quality. Funny thing, a guy that transferred to the superduty plant told me the cost cutting push is on right now. Total opposite of what Farley said to the press.
 

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I used to work at AAP which consistently had the best quality of any ford plant. In 2006 it was shut down and oakville assembly (the worst rated ford plant for quality) got the new vehicle. Why? The Canadian government thru a huge tax incentive to keep it open. Ford has always chased the dollar. They’ll push cost cutting then flip back to pushing quality. Funny thing, a guy that transferred to the superduty plant told me the cost cutting push is on right now. Total opposite of what Farley said to the press.
To paraphrase a classic:

"The cost cutting will continue until quality improves"
 

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Between UAW commitments, State and fed gov commitments, vendor commitments all with varying overlapping and competitive targets. There is clearly no corporate appetite to do anything other than acknowledge and talk as this continues.
 
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I used to work at AAP which consistently had the best quality of any ford plant. In 2006 it was shut down and oakville assembly (the worst rated ford plant for quality) got the new vehicle. Why? The Canadian government thru a huge tax incentive to keep it open. Ford has always chased the dollar. They’ll push cost cutting then flip back to pushing quality. Funny thing, a guy that transferred to the superduty plant told me the cost cutting push is on right now. Total opposite of what Farley said to the press.
In a prior news report last year Farley wanted to cut overhead this is a direct result.
 

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I worked for a formerly large computer company, now long gone.

The head of our division said that we were losing $1000 on every computer we sold. This was due to warranty work, both software and hardware.

He said that the good news is that our customers stopped buying them.
 

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In a prior news report last year Farley wanted to cut overhead this is a direct result.
The sad part is Ford knows how to build a quality vehicle. I remember the wind noise team at AAP got the sound level down below goal with 10-12 improvements to the car. 4 months later the cost cutting edict came down and 3/4s of the improvements were flipped back to save $1.25 or so per unit. Extremely Demoralizing.
 

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The sad part is Ford knows how to build a quality vehicle. I remember the wind noise team at AAP got the sound level down below goal with 10-12 improvements to the car. 4 months later the cost cutting edict came down and 3/4s of the improvements were flipped back to save $1.25 or so per unit. Extremely Demoralizing.
Yes you right Ford knows how to build quality vehicles. They need to cut middle management. Not the line nor inspection and Qc.
 

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Yes you right Ford knows how to build quality vehicles. They need to cut middle management. Not the line nor inspection and Qc.
I agree if middle management = corporate. The plants need all the support they can get.
 

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Ford QC will always be hampered by their dependence on sub-contracted part manufacturing. (Look at what parts are failing and having recalls.) No engineering direct oversight, low acceptance QC, and rush-to-line overrides will continue to minimize their best intentions. And inline AI is another delusion gate at the wrong end of the corral. If it wasn't for the dedication of the line workers, we would be driving Zhiguli cars.
 

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Honestly I think Ford's biggest QC issues are supplier and outsourcing. They need to bring more production back in house.
 

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I used to work at AAP which consistently had the best quality of any ford plant. In 2006 it was shut down and oakville assembly (the worst rated ford plant for quality) got the new vehicle. Why? The Canadian government thru a huge tax incentive to keep it open. Ford has always chased the dollar. They’ll push cost cutting then flip back to pushing quality. Funny thing, a guy that transferred to the superduty plant told me the cost cutting push is on right now. Total opposite of what Farley said to the press.
That’s going to be the case for here on out while they milk the ICE legacy side for investment cash on the EV side.
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