Ford Stock Falls 11% As Quality Gremlins And EV Operations Sap Profits

Warranty costs rose by $800 million in Q2 and Ford’s electric division lost $1.1 billion during April-June

Shares in Ford fell 11 percent after the company revealed a rise in Q2 revenue, but a drop in net income. Ford blamed the disappointing financial results on the cost of its many recalls, which rose by $800 million. The firm’s electric division lost $1.1 billion but its commercial arm generated $2.6 bn profit. Ford ’s status as the biggest recaller in the industry isn’t only offputting to drivers thinking about buying one of its products, it’s also putting off investors.

The next biggest quality villain, Tesla, has only issued eight recalls affecting 2.55 million cars, and Ford’s big rival GM only recalled 656,000 vehicles. Warranty costs weren’t the only factor hurting Ford’s performance. The company’s Model e electric unit lost $1.1 billion in the previous three months as Ford - along with other automakers - struggled to deal with an EV market that hasn’t matured the way it hoped. That loss was at least down from the $1.

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