Ford Warranty expenses

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jimbrewer

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Ford had a bad quarter. Partly it was higher than expected warranty expenses. About 2 and a half years ago when I bought that extended factory warranty for $715 I thought it was a bargain. I had no idea how right I was. I'm a Ford guy. But if the price of the warranty jumps 25% in less than three years, I can take a hint. Shouldn't we all? (P.S. No warranty claims whatsoever in my case).
 
We have replaced about 30 DSP6 clutch assemblies in the past 2 months. That is not including assemblies that had the new seal kit installed, lost track of those. BTW those clutch assemblies are $700+ a pop warranty price.
 
I'm sure it's like any other company. If you want fast paced product development and/or higher performing products your warranty expenses/defects will increase. I wouldn't even limit that to autos, that's true for anything. Still would rather Ford kept up with their powertrain offerings, which I would consider technologically better than average. Even the least reliable vehicles are still pretty good these days. Try to get a five year warranty on a tv, a toaster, a furnace for 5 percent of the cost.
 
It happens to all car makers. I'm bringing my Chevy Cruze in AGAIN tomorrow for the never ending coolant smell/loss issue. It's not normal to need a pint of Dexcool every couple of thousand miles. It's also not normal to smell coolant every time you shut down (at least they were able to reseal the cowl and keep the smell out of the passenger compartment---now I only smell it outside the car).
 
Originally Posted By: bdcardinal
We have replaced about 30 DSP6 clutch assemblies in the past 2 months. That is not including assemblies that had the new seal kit installed, lost track of those. BTW those clutch assemblies are $700+ a pop warranty price.
I'm guessing that's right. Transmissions are a traditional weak spot for Ford. The 'net scuttlebutt on the Eco-boost is pretty good, plus, you have to think they would do everything they could to make sure such a critical engine to their success was OK. But man! a 25% increase (impliedly) in warranty expenses! It could be much worse. After all, from an actuarial standpoint the bean counter reasoning, could be: 25% is good enough for now. If we have to raise it another 25% six months from now, we can....
 
Last edited:
Originally Posted By: jimbrewer
Originally Posted By: bdcardinal
We have replaced about 30 DSP6 clutch assemblies in the past 2 months. That is not including assemblies that had the new seal kit installed, lost track of those. BTW those clutch assemblies are $700+ a pop warranty price.
I'm guessing that's right. Transmissions are a traditional weak spot for Ford. The 'net scuttlebutt on the Eco-boost is pretty good, plus, you have to think they would do everything they could to make sure such a critical engine to their success was OK. But man! a 25% increase (impliedly) in warranty expenses! It could be much worse. After all, from an actuarial standpoint the bean counter reasoning, could be: 25% is good enough for now. If we have to raise it another 25% six months from now, we can....
I didn't help any. I had a new manual gearbox put in my '14 in Juy/August. Then it came out a few weeks later because Getrag forgot to install the input shaft seal..
 
Originally Posted By: bdcardinal
We have replaced about 30 DSP6 clutch assemblies in the past 2 months. That is not including assemblies that had the new seal kit installed, lost track of those. BTW those clutch assemblies are $700+ a pop warranty price.
Dang!!
 
Originally Posted By: jimbrewer
Ford had a bad quarter. Partly it was higher than expected warranty expenses. About 2 and a half years ago when I bought that extended factory warranty for $715 I thought it was a bargain. I had no idea how right I was. I'm a Ford guy. But if the price of the warranty jumps 25% in less than three years, I can take a hint. Shouldn't we all? (P.S. No warranty claims whatsoever in my case).
You need $715 repairs out of warranty + interest to even break even and that is unlikely statically. What you have is less tangible which is confidence of coverage. I have yet to have more then $400 warranty cover repairs in an extended period of 80k-120k miles on any vehicles I have owned. After that for sure lots more money but glad I skipped the warranty.
 
Originally Posted By: jimbrewer
Originally Posted By: bdcardinal
We have replaced about 30 DSP6 clutch assemblies in the past 2 months. That is not including assemblies that had the new seal kit installed, lost track of those. BTW those clutch assemblies are $700+ a pop warranty price.
I'm guessing that's right. Transmissions are a traditional weak spot for Ford. The 'net scuttlebutt on the Eco-boost is pretty good, plus, you have to think they would do everything they could to make sure such a critical engine to their success was OK. But man! a 25% increase (impliedly) in warranty expenses! It could be much worse. After all, from an actuarial standpoint the bean counter reasoning, could be: 25% is good enough for now. If we have to raise it another 25% six months from now, we can....
Their FWD automatics, yes, their RWD auto's no. I don't know how they can get so many transmissions right and so many wrong shrug It blows my mind.
 
Originally Posted By: Danno
Ecoboost expenses? Timeframe fits.
How so? Ecoboost has been out since 2009. I'll say this - If they would pay the dealers to diagnose and fix rather than throw parts at it or say "it's normal" only to have a comeback I'd bet their warranty cost would go down substantially.
 
Originally Posted By: jimbrewer
I'm guessing that's right. Transmissions are a traditional weak spot for Ford.
How sad. I remember the days of the C4 and C6 which were bulletproof for normal use, or could be beefed up for racing use. Rebuilds were cheap and hardly ever needed.
 
Originally Posted By: rjundi
Originally Posted By: jimbrewer
Ford had a bad quarter. Partly it was higher than expected warranty expenses. About 2 and a half years ago when I bought that extended factory warranty for $715 I thought it was a bargain. I had no idea how right I was. I'm a Ford guy. But if the price of the warranty jumps 25% in less than three years, I can take a hint. Shouldn't we all? (P.S. No warranty claims whatsoever in my case).
You need $715 repairs out of warranty + interest to even break even and that is unlikely statically. What you have is less tangible which is confidence of coverage. I have yet to have more then $400 warranty cover repairs in an extended period of 80k-120k miles on any vehicles I have owned. After that for sure lots more money but glad I skipped the warranty.
"unlikely?" Evidently not so much. The guy selling the policy on the 'net gets $65, and I used the $50 deductible level. So, Ford receives around $700 for the risk. It doesn't take too many transmission repairs to wipe out a few 700 dollar policies. Ford would not be jumping the price so dramatically unless their claims history required it.
 
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