Ford has $2B more in warranty costs than GM

[350Rocket]

I bought a new, fully decked out F-250 Diesel 4X4 in 1990. It wasn't cheap. The transmission failed three times in the first few thousand miles. It required a complete rebuild each time. The last time it caught fire. I was into the lemon law portion of my ownership when Ford begged me for one final chance to repair the transmission. They actually got it right the third time but lost me as a customer for life. They accused me repeatedly of mistreating that POS E4OD. I never hauled anything heavier than grocery sacks during this 3 rebuild cycle. I for one hope they go under. I'm sure their tens of thousands of employees can find lucrative employment at walmart or maybe become uber drivers. A company that abusive, corrupt and technically challenged doesn't deserve my sympathy or goodwill.

Was it a 91? I was told they were especially bad by other employees at the Ford dealer who worked there long before me.

 

[kschachn]

Every cent is deducted. You still just say things no explanation. Why isn’t the repair an expense? Anything?

Not from their taxes, as you stated.

 

[Danh]

Taxes are on income. Warranty costs reduce income, just like the costs of manufacturing.

 

[Job]

Not from their taxes, as you stated.It's ok if you don't know expenses for business reduces your taxes, andthatmeansunclb Sam is essentially hekpimg out . Just like I said the first time.h

Not from their taxes, as you stated.

There are credits and deductions from taxes. That’s how English works. As in “l‘m taking a tax deduction for giving to charity”. Tax deduction infers the whole process of doing taxes. The deduction doesn’t have to be direct to be a deduction. As usual your only purpose posting here is to find fault with others. Seems to be quite an issue for you.

 

[kschachn]

There are credits and deductions from taxes. That’s how English works. As in “l‘m taking a tax deduction for giving to charity”. Tax deduction infers the whole process of doing taxes. The deduction doesn’t have to be direct to be a deduction. As usual your only purpose posting here is to find fault with others. Seems to be quite an issue for you.

As usual your only purpose for posting here is to post in accurate statements. Seems to be quite an issue with you.

 

[4WD]

As usual your only purpose for posting here is to post in accurate statements. Seems to be quite an issue with you.

Inaccurate is one word

 

[Snowflake White]

Yeah it seemed odd, as to why Ford would have used a different transmission when the one already used in Europe seemed to be without any issues.

I can think of one thing....the home market Dearborn didn't like the fact that the European designs were far superior and wanted to sabotage the products so designs for the North American market would come back here to the USA. This has been done many times over in the past,
from Capri, to Fiesta MKI (1970s), to Merkur XR4Ti and Scorpio, ect.....always take a solid basic product from Europe and have the home market folks add a ticking timebomb to sabotage that product.

Ford Germany cars have always been far superior to anything the domestic market company has offered and simply put Dearborn is jealous of this.

 

[HangFire]

I can think of one thing....the home market Dearborn didn't like the fact that the European designs were far superior and wanted to sabotage the products so designs for the North American market would come back here to the USA. This has been done many times over in the past,
from Capri, to Fiesta MKI (1970s), to Merkur XR4Ti and Scorpio, ect.....always take a solid basic product from Europe and have the home market folks add a ticking timebomb to sabotage that product.

Ford Germany cars have always been far superior to anything the domestic market company has offered and simply put Dearborn is jealous of this.

This is an interesting theory... having followed Ford closely and watched all of these things happen... my conclusion was that the domestic engineers are simply less competent than the European engineers. But you maybe right. And if you are right, that means the domestic management is simply less competent.

 

[HangFire]

Taxes are on income. Warranty costs reduce income, just like the costs of manufacturing.

I strongly recommend you don't do you own taxes.

Corporate taxes are based on gross revenue, and simply changing that bottom line by subtracting costs would send people straight to jail.

Warranty expenses affect profit, not gross revenue. While profit is also figured into taxes (whether it exists or not), not so much as gross revenue does, which is why it is not a "deduction".

 

[Danh]

I strongly recommend you don't do you own taxes.

Corporate taxes are based on gross revenue, and simply changing that bottom line by subtracting costs would send people straight to jail.

Warranty expenses affect profit, not gross revenue. While profit is also figured into taxes (whether it exists or not), not so much as gross revenue does, which is why it is not a "deduction".

Revenue - expenses = pretax income. Pretax income - taxes = net income. And one type of expense are warranty costs. Corporate taxes are not based on gross revenue. (I did this for a career, so I really do understand Accounting 101.)

 

[HangFire]

It's still not a "deduction". Fail to make a profit for 3-4 years straight and get back to me on how you still have pay taxes.

 

[DGXR]

For the claimed warranty costs... I wonder if Ford (and its suppliers) are honoring their warranty more than GM is. Or maybe GM has better lawyers and looking for more ways to deny warranty coverage. Just a thought.

 

[350Rocket]

For the claimed warranty costs... I wonder if Ford (and its suppliers) are honoring their warranty more than GM is. Or maybe GM has better lawyers and looking for more ways to deny warranty coverage. Just a thought.

Could be the case these days, but like I said earlier during the bailout they were absolute thieves, stealing from the customers and clients. I think it may be harder to deny warranty on a vehicle that will not move forward due to a failed DCT though.

 

[tvaughn]

Having to Lemon Law my 2018 Shelby GT350 after 2 blown engines, this news doesn't surprise me the least.

 

[Job]

It's still not a "deduction". Fail to make a profit for 3-4 years straight and get back to me on how you still have pay taxes.

Adjusted gross income is taxed, not gross, and if one area has a loss it offsets another area that has profit. If you really want to get into it there is NOL which is now 20 or 21 years. I know a woman who had a small business that she lost a lot of money on. She gets to spread that loss over many years so pays no taxes to this day on substantial income. This is a huge loophole in our tax code. Originally NOL was for two years which made sense. I have no idea why people are so outraged at the fact Ford can deduct every penny of the repairs on their taxes. All companies do it. It isn't even something to discuss, of course businesses deduct their expenses to pay less taxes.

 

[brianl703]

Could be the case these days, but like I said earlier during the bailout they were absolute thieves, stealing from the customers and clients. I think it may be harder to

Ford was pretty bad about getting warranty work done in the late 90s. I haven't had a Ford new enough since then to be covered under warranty. The local dealer is called Battlefield Ford. "Here at Battlefield Ford, the battle starts when you need a warranty repair!"

 

[R1jake]

That’s nice. I appreciate the heads up that’s not a repair I look forward to doing lol. We plan on keeping it long term we just got it in September I went over the suspension so far I didn’t see any on the suspension hardly but I’ll keep an eye out it’s been down here in the south since 2014.

Keep those parts wool waxed and you won’t have any rust issues.

 

[4WD]

Having to Lemon Law my 2018 Shelby GT350 after 2 blown engines, this news doesn't surprise me the least.

What did you replace it with ?

 

[4WD]

This is not just the complaint of a few DIY types whining alone in the wilderness.

"Hard to work on" means high warranty costs, as dealers have to fix the inevitable assembly line screwups, occassional bad supplier part, or residue of bad design. Those costs go directly back to Ford (yes the dealer absorbs some of them as the warranty rates are lower than consumer rates). Unless it fails out of warranty, then the consumer is screwed.

That fits our (former) 2015 Explorer … a high torque twin turbo feeding a PTU that was not just nearly impossible to service … it has 14 ounces of changeable fluid … and wrapped inside of two exhaust tubes.

 

[R1jake]

Guy I work with drove a f150 for years. Seemed to be a great truck and he has no intrest in maintaining any extra just the bare minimum. Never even washed the thing. Finally the tranny started giving him problems so he went out and bought a used car. A 2012 ford fusion with the dct!!! I’ve not even told him what’s to come being I’ve already warned him of his other purchase for his wife’s daily driver which is a Nissan Rogue with the cvt during the bad era. Forget the model year but confirmed it does fall in the bad cvt years back when he purchased it. So this guy has 2 of the worse trannys put out for his and his wife’s daily drivers. I’m amazed that so far he’s not had tranny issues on either.