Hit by Recalls, Ford Remembers Quality Is Job 1

Ford Motor Co. said it is putting a new emphasis on quality to combat problems that led to more than $1 billion in lost profit last year through delayed product introductions and recalls.

“We raised our standards and we didn’t raise our capabilities,” Chief Executive Jac Nasser said in a meeting with analysts Thursday in Detroit.

The world’s second-largest auto maker has had to slow production to deal with quality problems during introductions of new and redesigned vehicles in the U.S. and Europe. Ford ordered recalls last year on its new Focus compact car and small sport-utility vehicle, the Escape.

“If they can improve on their quality and launches, it would provide incremental [increases in] profit and customer satisfaction,” said Lehman Bros. analyst Nick Lobaccaro, who has an “outperform” rating on Ford shares.

Ford last month said it’s delaying the introduction of the 2002 Explorer by several weeks to ensure that its signature sport-utility isn’t hampered by defects or recalls.

The auto maker recalled 351,000 Focus cars in North America in October to install panels to help hold windshields in place and to check for rear-wheel and cruise-control difficulties in some vehicles.

Ford shares fell 56 cents to close at $26.38 on the New York Stock Exchange.