Ford rehires over 350 veteran engineers after AI quality systems contribute to record recall costs

Ford hired more than 350 veteran engineers over the past three years to correct errors produced by automated quality systems. The engineers, referred to internally as gray beards, lead quality reviews and help train artificial intelligence tools. Kumar Galhotra, Ford’s chief operating officer, said the company had relied more on automated systems without achieving the desired results.

The specialists now examine designs for failure points before parts reach the plant floor. Charles Poon, Ford’s vice president of vehicle hardware engineering, said artificial intelligence remains a useful tool only when trained with accurate information from experienced staff. He noted that prior years had placed insufficient weight on engineers who had worked through multiple product cycles.

Ford ranked first among mainstream brands in the most recent J.D. Power Initial Quality Survey, its first time at the top in 16 years. The company placed tenth in the prior year’s survey. The automaker remains the most recalled in the United States.

By mid-2024 recalls were costing $4.8 billion annually, and the firm issued 90 recalls in July 2024 alone, including a $570 million charge tied to nearly 700,000 crossover vehicles. Ford expects more than $1 billion in warranty and material costs from recalls this year while targeting $1 billion in overall cost savings.

Jim Farley, Ford’s chief executive, said warranty and recall expenses have already declined, producing hundreds of millions of dollars in cost tailwinds.

The company stated it will continue using AI systems but will pair them with human oversight rather than replace experienced judgment.