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Ford to Shift Warranty Repair Costs to Suppliers

» Posted January 4, 2021Resources | Share This Post

There is a new sheriff in town at Ford Motors and he wants the American automaker to cut costs by shifting more of the burden to suppliers for warranty repairs.

Jim Farley, Ford’s new chief executive officer, is looking to “rein in” repair costs for cars under warranty, Reuters reports. He is doing that in part by telling parts suppliers that they will have to cover half of the upfront costs for warranty repairs related to their products.

“What we are striving for is to fix the issues as fast as possible so that those adjustments are as small as possible,” Kumar Galhotra, who runs Ford’s Americas and International Markets group, recently told Reuters. “They’re more incentivized to work with us.”

Spiking warranty repair costs have long been a pain point for Ford, according to Reuters. The company reportedly spent $2 billion more than General Motors on warranty repair costs in the first nine months of this year alone. 

But faulty parts only account for about one-third of Ford’s warranty repairs, Galhorta told Reuters. The other two-thirds stem from manufacturing and design defects.

Car Defects, Safety Risks, and Your Legal Rights

Ford’s concerns over warranty repairs may be largely monetary, but the truth is that malfunctioning parts and vehicles pose serious safety risks. Defects often go long unnoticed, prompting unexpected problems that can cause accidents on the road.

That is where the California lemon law comes in, at least for car owners and lessors in the Golden State. 

The law requires car manufacturers to perform various repairs on vehicles while they are under warranty. If a manufacturer refuses or is not able to fix a problem, the law also requires the company to buy back the vehicle. That includes compensating the owner or lessor for the purchase prices, as well as financing costs and other expenses.

A carmaker can offer to replace the vehicle instead of buying it back, but it is up to the owner or lessor to decide whether to accept this alternative arrangement. 

Because there is no set number of repair attempts or requests that must be made before the law kicks in, it is important to consult an experienced California lemon law lawyer.

How a California Lemon Law Lawyer Can Help

If you are a California car owner or lessor feeling stuck with a lemon, a seasoned California lemon law lawyer can help.

At Bickel Sannipoli APC, California lemon law lawyer Brian Bickel and his team have represented hundreds of clients in defective vehicle cases in Southern California and across the state. We have a strong track record of success for our clients.

Our offices are conveniently located in Los Angeles, San Diego, and San Francisco.  Call us at (888) 800-1983 or contact us online to speak with a California lemon law lawyer today.

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Posted By: Danyel Jerald