Ford is taking proactive measures to address its recall issues by implementing a new strategy that involves holding off on delivering new vehicles to dealerships. The company, which spent a significant $4.8 billion on recall fixes last year, is aiming to reduce the number of recalls and associated costs.

Recalls are a common occurrence across various industries, and Ford is no stranger to them. With the rise in new technologies in vehicles, the number of recalls in the automotive industry has increased significantly over the years. Ford, being the most recalled automaker since 2020, is taking steps to change that.

By delaying the delivery of new and redesigned vehicles for additional quality checks at the factory, Ford hopes to ensure that its products meet the highest standards before reaching customers. While this may impact the company’s initial profits and executive bonuses, Ford believes that the long-term benefits will outweigh the short-term costs.

Ford’s CEO, Jim Farley, stated that this new process will lead to fewer recalls and lower warranty costs in the future. The company has already seen positive results from its ‘build-and-hold’ campaign with the F-150 pickup, which resulted in a significant drop in earnings for the ICE variant but also prevented 12 recalls.

Moving forward, Ford plans to apply the same strategy to other new models like the Explorer, Bronco Sport, and Maverick. By conducting thorough inspections before releasing the vehicles to the market, Ford aims to improve overall quality and customer satisfaction.

While the new approach may impact Ford’s financial performance in the short term, the company believes that it is a necessary step to enhance its reputation and reduce costly recall incidents in the future.