subject: Is Quality Job 1 At Ford? [print this page] Could the new name for quality be Ford? If the once dominating manufacturer from Detroit has anything to do with it, then the answer is surely yes. If you have driven a Ford lately, you surely notice a difference. There does seem to be a certain quality about their vehicles this year. Kristen Kinley, Ford's Quality Communications Manager, says the first step to reducing defects is to design better cars in general. She also points out that streamlining the manufacturing process, an initiative the company has been focusing on for several years now, has contributed to quality as well.
J.D. Power released the 2010 Initial Quality Study data. From February to May this year, 82,000 owners and leasers of new vehicles were surveyed and their comments tallied scoring automakers according to the number of problems per 100 vehicles. The average score for the industry this year is 109 problems per 100 automobiles. This is just a slight increase from last year's average of 108.
However, in astonishing contrast to the industry norm, Ford's Nameplate Score is dropping. This year, Ford touts an impressive 93 problems per 100 vehicles. Amazing. This is lower than Honda, whose Nameplate Score is 95. It is even more impressive compared to Lexus, who has dominated the quality studies since their inception in 1990. This year Lexus barely beat out Ford with a Nameplate Score of 88. Not bad Ford. Keep up the good work. Maybe you will soon be synonymous with Quality.
This year, twelve Ford models placed within the top three positions in their respective categories. Three of their models topped their class. The Ford Focus tops the Compact Car segment. The Ford Mustang tops the Midsize Sporty Car class, and the Ford Taurus tops the Large Car class.
But that is not all. When you look deeper into the study we learn an even more impressive fact. Ford is ranked 5th place overall and 1st place among the major manufacturers. The top four are Porsche, Acura, Mercedes-Benz, and Lexus. By most standards, this is pretty good company for Ford to be associated with.
Ford seems to do no wrong lately. They avoided bankruptcy court. They steered clear of the constraints of government bailout money. They entered the realm of profitability in 2009. They are increasing sales numbers and keeping Honda out of the number three position for total sales.
So, what about tomorrow? It is apparent the company has a plan, and a good one at that. CEO Alan Mulally recently commented, "We expect to continue to improve our balance sheet as we deliver on our plan. Our business results make it possible to take these actions while still accelerating the investments we are making in our business." This statement came just after Ford announced it was paying down it's debt by $4 billion. With sales increasing, profits climbing, and a cleaner balance sheet, Ford should be able to sustain quality improvements for a while.
If this truth remains, good things will keep happening to Ford. GM is struggling, dropping from 9th place last year to 14th place this year, with a Nameplate Score of 111. Toyota's woes continue, tumbling from 6th place last year to 21st with a Nameplate Score of 117. If Ford keeps investing in quality, focusing on profitability, and streamlining their efficiencies, they can really set themselves apart from the other mass-producers.
Look out GM and Toyota. Ford is on the rise. Maybe we can finally believe that at Ford, quality is really job 1. Have you driven a Ford lately?
