Ford Paying Dealers $300 Spiff for Escape Recall
In the past, Ford has had some serious issues with its cars and fire. Two that stick firmly in our minds are the Pinto, which Ford famously weighed out the cost of recall vs. the cost of paying wrongful death suits, and the spontaneous combustion of the second generation Taurus. So when we learned that the newly redesigned Escape had a potential fire issue, we expected swift and proactive action from Ford.
We certainly got that, but we never expected it to be to the extent that it has become. Reports have emerged that Ford is actually paying dealerships a $300 spiff to repair each and every recalled Escape, which is about 11,500 vehicles. Even our basic mathematical skills can sort out that we are talking about $3,450,000 worth of spiff payments, which does not include the cost to repair the issue.
We are curious to find out if the dealers are passing this spiff onto the service writers and technicians that are repairing the vehicles or hoarding this payment for themselves. We are willing to bet that it is the latter, as the technicians and service writers make commission off of the recall repairs and dealers rarely share spiffs any more.
In addition to this extra bonus, Ford is also recommending that dealerships wash and vacuum the SUV, and fill the gas tank. Talk about going over the top...
It is rather obvious that Ford wants this issue gone and it wants it gone as quickly and effectively as possible. Hats off to Ford for taking this sort of approach with this extremely dangerous recall.
Source: The Detroit Free Press