Ford Motor Company Warranty Strategy Analysis

As part of a collaborative team, I contributed to a strategic decision analysis for Ford Motor Company, evaluating whether to maintain, match, or exceed competitors’ powertrain warranty offerings. Our team analyzed consumer loyalty data, purchase drivers, and satisfaction metrics alongside detailed financial modeling of market share, unit sales, contribution margins, dealer profitability, and extended service plan (ESP) trade-offs.

After evaluating five warranty scenarios, our team recommended exceeding GM’s warranty as the strongest strategic move to differentiate Ford, signal product confidence, and strengthen long-term brand loyalty despite higher short-term costs. During the final discussion, our professor noted that this recommendation was the best strategic option, while also explaining that in the real-world case, Ford ultimately chose to match GM’s warranty due to dealer and financial constraints.