Ford Exec: OTA Connectivity Improves Recall Management

A much greater degree of over-the-air connectivity in newer Fords and Lincolns means Ford can nip recalls and other service bulletins in the bud much faster, says Hau Thai-Tang, the automaker’s chief product platform and operations officer.

“We have very large volumes,” he says Aug. 11 at the online J.P. Morgan Auto Conference. Ford recalls may involve “hundreds of thousands, sometimes millions” of units, Thai-Tang (pictured, below left) says.

“We’re getting data back very slowly” from older cars and trucks, he explains. “It takes time to diagnose.” Using earlier technology, by the time Ford realizes it has a potential recall on its hands, “we have tremendous exposure,” Thai-Tang says.

But with the new generation of connectivity, on such vehicles as the new Ford F-150 or the Ford Mustang Mach-E, Ford can identify and potentially fix a problem much faster, via over-the-air software updates.

With more complete and faster data, that could be accomplished in “tens, or hundreds, of vehicles, rather than hundreds of thousands, or millions. That’s a big cost saver,” for the automaker, he says.

Such efficiency could be a mixed blessing for dealers because warranty work is a major source of dealership fixed-operations revenue. Smaller recalls imply fewer service visits.

However, Thai-Tang says over-the-air updates should increase customer satisfaction, generate more “recommenders” and increase customer loyalty. In addition, after-the-sale subscriptions and the ability to turn certain features on and off remotely should help customers enhance the value of their vehicle after they buy it.

Hau-Thai-Tang-0994-HR.jpeg

“We used to view the start of production, which we call Job One, as the finish line,” he says. “Now, it’s the starting line.”