Ford's Wild Ride: Booming Sales While Recalls Mount to Record Highs

Miami Herald

25-06-2025

While automakers around the globe contended with struggling sales throughout 2024, largely due to increased competition from China, Ford saw strong performance on its home turf. The American automaker saw six percent growth last year. In particular, Ford's electrified lineup performed well, with sales exceeding 285,000 units in 2024. Notably, the all-electric Mustang Mach-E outsold the Mustang muscle car, which could signal a change is in the wind for the legendary pony car.
It isn't all good news for Ford, though, as the American automaker has garnered a reputation for recalls and warranty claims. In May, for example, Ford recalled nearly 1.1 million vehicles in the United States due to an issue with the rearview camera. Issues with quality have frustrated Ford executives, with CEO Jim Farley indicating managers could see their bonuses slashed if they fail to meet metrics in a new performance system.
Despite cutting sedans from the lineup, Ford continues to offer mass appeal with vehicles that put capability and practicality at the forefront. As a result, the American automaker's sales were fairly solid in May, with a 16.3% year-over-year increase to 220,959 vehicles sold. In the first five months of the year, Ford's sales are up 6.1% compared to the first five months of 2024.
The Ford F-150 continued to be America's best-selling truck for the 48th consecutive year. On the smaller side, the Ranger is the world's second-best-selling midsize pickup, and the Maverick continues to dominate the compact truck segment in the United States. May also proved to be the Expedition's best sales month in two decades, with 11,298 units sold.
Tariffs have threatened to increase vehicle prices in the United States, with a proposed 25% tariff on imported vehicles and parts. Ford has also continuously promoted its made-in-America marketing campaign, noting that it's the most American automotive manufacturer. 80% of all Ford vehicles sold in the United States are built here as well. The American automaker has also offered an employee pricing incentive to consumers since early April, further bolstering sales.
While Ford's sales have been solid in the first half of the year (so far), that doesn't mean that trend will continue through the second half. Tariffs, recalls, and the end of the employee pricing incentive could put a damper on those sales numbers.
Ford's reputation for recalls is still going strong in 2025. The American automaker has been on fire with recalls over the past few months alone. According to data from CarEdge, Ford has issued 51 recalls in the first five months of the year, with over 1.8 million vehicles affected. Comparatively, Volkswagen Group, which includes Audi, Porsche, and Volkswagen, among others, issued just 14 recalls in the same period. One of the most recent recalls includes nearly 200,000 Mustang Mach-E models in the United States, and another 120,000 in other markets, due to door latches that can trap passengers in the EV.
Averaging more than 10 recalls per month isn't a good look for any automaker, but it's even worse for Ford. The automaker announced it would be appointing a new head of quality in early 2025, but that individual has yet to be named. Ford reported that its Q2 2024 recall and warranty costs exceeded $2.2 billion, up $800 million from the prior quarter.
On top of all the recalls, it turns out not all of Ford's remedies fix the problem. Most recently, a class-action lawsuit indicates that some EcoBoost engines have a defect that allows coolant to leak into the cylinders, causing them to crack. Instead of replacing the entire engine block, which would presumably solve the problem entirely, Ford is cutting corners with smaller, less effective remedies, like installing coolant level sensors.
Worse yet, other recall solutions are directly affecting a vehicle's appeal and capability. The Ford Transit Trail was advertised as a more capable, off-road version of the popular van. The recall issued indicates that the tires could rub on the inner arch liners while turning. To fix the issue, the automaker removed the 30.5-inch tires and replaced them with 28.5-inch tires. The lawsuit alleges that the fix reduces the van's ground clearance and off-road capability, which are two of the van's major selling points.
Since taking over as Ford CEO in 2020, Jim Farley has been pushing for improvements in vehicle quality. In fall 2024, he suggested that managers could see their bonuses slashed to 65% of their total if quality and cost metrics aren't met. Farley also introduced a new performance system designed to hold employees accountable, a major shift in the company's century-plus history.
"It's a fundamental change in the way we're running the company. We now truly differentiate and reward excellence at Ford," Farley said, regarding the new performance system. "It's a massive culture change."
The Ford Mustang is the last of its breed, a generational pony car designed to deliver spirited performance at a relatively affordable price point. Unfortunately for the beloved muscle car, ballooning vehicle prices and consumer cutbacks on spending have put the Mustang in a tough spot. For many, purchasing a second vehicle purely for the fun aspect isn't in the cards in the current economy. That, and various other factors, resulted in the gas-powered Mustang's year-over-year sales falling by 9.5% in 2024.
With just over 44,000 units sold, the Mustang pony car is no longer the best-selling model wearing the legendary nameplate. That honor goes to the all-electric Mustang Mach-E, which saw sales jump by nearly 27% to more than 51,700 units sold. While the two models share a nameplate, they're far from the same vehicle. Whereas the gas-powered Mustang is a muscle car, the Mustang Mach-E is an electric crossover, making it the more practical choice for the average consumer.
The muscle car segment was never a bloated one, with just a handful of competitors. With the discontinuation of the Dodge Challenger and Chevrolet Camaro, however, the Mustang is truly the last of its kind. Fortunately, it doesn't seem like Ford is planning to follow its competitors into the sunset. Instead, the American automaker actually seems to be taking the opposite approach with a supercharged version of the Mustang.
The 2025 Ford Mustang GTD is essentially a street-legal, track-ready race car. With a top track speed of 202 mph and 815 horsepower under the hood, the Mustang GTD marks a major turning point for the muscle car. That extreme performance led to the Mustang GTD making headlines as the first sports car from an American automaker to run the Nürburgring course in under seven minutes. As a limited production model, the 2025 Ford Mustang GTD will cost you around $325,000 if you're lucky enough to be selected for ownership.
Ford has had its ups and downs, but with a new performance system designed to improve vehicle quality and reduce costs, the American automaker seems to be heading in the right direction. Unfortunately, recalls on older vehicles aren't uncommon, and many of the current recalls reach back to the 2020 model year. That means those recall and warranty costs could haunt Ford for years to come.
On the bright side, Ford's sales have been strong in recent months, with the Expedition seeing its best sales month in 20 years. With tariffs increasing costs and the employee pricing incentive ending in early July, though, the automotive manufacturer could be in for a rough go of it in the coming months. Not only that, but increased competition from competing truck brands, like Ram, could put Ford in a tight spot if they can't get costs under control. Given the Ranger's global success, however, the American automaker is set up for success not only in the United States but also around the world. That's not a bad position to be in, especially if they can iron out the all-too-present issues at hand.
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