GM, Ford Tie Staff Bonuses to Vehicle Quality

GM, Ford Tie Staff Bonuses to Vehicle Quality

General Motors and Ford are putting renewed focus on quality. Each company had its share of issues in recent years but they’re taking a similar – and probably controversial – approach to improving.

Going forward employee bonuses at both firms will be tied to meeting quality goals. Lately GM has been sucker-punched with massive recalls and Ford has been dogged by issues with its infotainment technology.

At the Blue Oval this decision will impact roughly 26,000 salaried workers. This includes everyone from administrative assistance to engineers to Alan Mulally himself. Twenty percent of bonuses paid for 2014 will hinge on quality, up from 10 percent last year.

Likewise GM increased that portion of its bonuses to 25 percent, also up from 10 in 2013. All of the company’s salaried workforce, including some 37,000 people will be affected by this plan. High-ranking executives are included in the total.

Along with its ongoing MyFord Touch debacle, the Blue Oval has also struggled with recalls lately as well as persistent issues with underbody rust. Its fuel-saving dual-clutch automatic transmissions have also suffered the scorn of motorists and reviewers alike.

GM has been doing better in many quality studies than its cross-town rival but it’s still been ravaged by issues. Most recently it’s had to recall some 2.6 million vehicles for potential ignition faults.

Discuss this story on our General Motors forum or Ford forum

[Source: The Detroit News]