Ford has been named the top mainstream brand in JD Power's latest Initial Quality Study, a surprising leap from 15th place just three years ago.
CEO Jim Farley attributed the achievement to a four-year campaign to overhaul the company's quality systems.
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The study measures problems experienced in the first 90 days of new vehicle ownership.
Ford recorded an average of 152 problems per 100 vehicles, beating brands like Lexus, Nissan, Buick, Hyundai, and Subaru.
“Oh boy, this is a big day for Ford,” Farley said after the results were announced.
“We've worked really hard for four years to be an overnight success story. It's been an incredible journey over the last several years.
We have completely transformed all of our plants and our quality operating system.”
Culture Shift and Cost Savings
Farley noted that Ford had to change its culture to match competitors from Japan and Germany.
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Workers are now “completely obsessed with all the data,” he said, adding that “we look at every defect and understand why it happened.”
While the study only covers the first 90 days, Farley told Yahoo! Finance that warranty costs fell last year and will continue to decline.
He also stated that “recall costs are going down,” calling it “a big financial story for the company too.”
Ford has issued 51 recalls this year, more than double any competitor. However, Farley emphasized that the company is now focused on preventing problems before they occur.
Beyond quality, Ford plans to launch five or six more affordable models, starting with an electric pickup under $30,000.
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Farley also revealed that Ford can now match BYD on battery costs, thanks to its skunkworks team in California.
