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Latest Ford announcement adds to an expensive problem
  • Trading

Latest Ford announcement adds to an expensive problem

  • August 15, 2025
  • Roubens Andy King
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Ford has had a banner year so far.

Since April, the company has relied on incentive spending programs like its “From America, For America” campaign to provide customers with employee pricing.

“Employee pricing for all was easy to understand and resonated with customers,” said Ford U.S. Sales Director Rob Kaffl.

Related: US car buyers feel tariff pain as one automaker raises prices

“But we also heard from our Ford and Lincoln dealers that more customers could benefit if we could reduce the upfront, out-of-pocket expense to buy or lease a vehicle.”

To address this, Ford is introducing its 0-0-0 summer sales event, featuring zero down payment, zero percent interest for 48 months, and zero payments in the first 90 days of the contract. 

The plan has worked incredibly well. 

More automotive:

  • Ford CEO Jim Farley supports US tariffs despite $2 billion cost
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  • Car buyers beware, the market appears to be shifting gears

The threat of 25% tariffs has incentivized car shoppers to rush to dealerships to get vehicles before the cost of the taxes gets passed down to customers.

And Ford has reaped the benefits.

Ford increased sales in the first half of the year by 6.6% to 1.11 million units. Even its struggling EV lineup saw a nearly 15% increase to 156,509 units. Total vehicle sales in the second quarter were up more than 14%. 

Ford says its total sales rose in the second quarter at a rate about 7x that of the overall industry. The company says it was the top-selling brand in the U.S. during the first half of the year.

But there has been a pretty big fly in the ointment for Ford in 2025: recalls.

Ford has had a record-breaking start to 2025.

Image source: Thayer/Bloomberg via Getty Images

Ford issues another recall, but this problem can be fixed over the air

Ford also has had a record-breaking year when it comes to recalls. 

The more than 80 recalls Ford issued in the first six months of the year easily surpassed General Motors' full-year record from a decade ago. 

The U.S. National Highway Traffic Safety Administration announced that Ford is recalling 312,120 vehicles in the U.S due to a brake assist issue that could cause the loss of that function. 

Affected vehicles include:

  • 2025 Ford Bronco
  • 2025 Ford Expedition
  • 2025 Ford F-150
  • 2025 Ford Ranger
  • 2025 Lincoln Navigator

Ford will start mailing letters to owners beginning August 25. Owners can contact Ford customer service at 1-866-436-7332.

Ford says it is issuing an over-the-air software update to fix the issue. However, customers will be able to schedule an in-service appointment.

Related: Ford Motor CEO takes ‘radical approach' to major problem

This year, the revived Ford Bronco has been one of Ford's best sellers. The company sold 30,000 Broncos in May alone.

The vehicle has become so popular that, according to Ford Blue and Model e President Andrew Frick, the four-door Bronco beat the iconic Jeep Wrangler in sales for the seventh consecutive month through July.

But now, the Bronco is caught up in this latest recall along with the F-150, America's best-selling truck.

Some Ford recalls cost the company a lot more than others

Costs associated with recalls and customer satisfaction claims, what Ford calls field service actions (FSA), account for about 40% of Ford's warranty costs.

The other 60% covers bumper-to-bumper and powertrain warranty coverage. 

“We are not satisfied with the current level of recalls or the number of vehicles impacted. We are working to reduce the cost of these recalls,” said Chief Operating Officer Kuman Galhorta.

Ford says that about a third of its recalls over the past three years have been software-related, and over-the-air recalls cost 95% less than physical ones. 

Related: Ford reports another blowout sales month, but trouble could be ahead

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Roubens Andy King

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