Ford Reportedly Giving Companywide Bonus for Improved Quality After Record-Setting Year for Recalls
Ford recalled over 10 million vehicles last year, yet the company is reportedly giving its employees a big bonus for improved initial quality. It is an interesting decision, to be sure.
Ford Motor Co. CEO Jim Farley reportedly told employees on Wednesday that because of this improved initial quality, the company will set companywide bonuses to 130%. Apparently, what happens after 90 days of owning a Ford vehicle isn’t as high a priority for the company. At least that’s the message the automaker is sending.
Then again, this companywide bonus for improved initial quality aligns well with Ford’s previous spin. Despite Ford recalling nearly 13 million vehicles in 2025, Kumar Galhotra, Ford’s chief operating officer, said last month that it was a good thing.
Ford’s initial quality is the best it’s been in a decade
Ford set a record for recall notices to consumers in 2025 with 153, according to the National Highway Traffic Safety Administration. These recalls were for failures such as loose front seats, fuel fire risks, engine fire risks, rollaway risks, dangerous airbags, and just plain falling apart while driving.
According to Reuters, Farley told his employees that the higher payouts are mainly due to the automaker’s improved initial vehicle quality (the number of repairs required within the first 90 days of ownership). Farley added that the metric is the best it has been for the company in a decade.
Everyone at Ford benefits from this in-house metric, some more than others
In previous years, Ford spokesman David Tovar told the Detroit Free Press the companywide bonus multiplier in 2024 was 69%, and for 2023 it was 84%. Of note: the increase in that bonus multiplier will likely benefit executives like Farley, despite Ford recently posting an $8.2 billion net loss.
“This year is above target,” Tovar said. “The quality metric was one of the biggest factors in achieving it because it’s initial quality. We’ve been saying our initial quality scores have been improving.”
Given the number of recalls Ford has issued over the past year, the bonuses will certainly come in handy for all of the Ford employees who drive the company’s vehicles.
