Ford

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Ford

Basic information
Founded	1903
Legal Structure	Public
Industry	Automotive
Official website	https://ford.com/

The Ford Motor Company was founded in 1903 by Henry Ford in Detroit, Michigan. With the introduction of a moving assembly line, Ford drastically reduced the cost and time of automobile production, making cars affordable for the masses and transforming industrial production globally. It is one of the oldest and largest automobile manufacturers, one of the "Big Three" American automakers, alongside General Motors (GM) and Stellantis (formerly Chrysler).

Consumer protection summary

User privacy

Ford’s data collection practices and privacy policies have raised significant concerns:

• Extensive data collection: Ford collects a wide range of personal and vehicle data, including location, driving behavior (speed, braking), voice commands, media preferences, and even passenger information. This data is linked to the Vehicle Identification Number (VIN), which can be tied to individual users.
• Data collected includes purchase history, financial information, coarse and precise location data, contact information, identifiers (e.g., VIN, account ID), user-generated content (e.g., voice recordings from smart features), search and browsing history for advertising purposes, usage data, sensitive information (under "Inferences"), diagnostics, and more.
• Aggregates data from external sources as well, including users' social media posts.
• Privacy policy is designed to prevent quickly searching for important terms.
• Lack of transparency and control: Users are often unaware of the scope of data collection, and Ford’s policies allow sharing with affiliates, dealers, advertisers, and law enforcement. The company reserves the right to override location settings in certain circumstances (e.g., repossession, legal requests).
• Security vulnerabilities: Past incidents, such as cybersecurity flaws in the FordPass app and exposed customer records, highlight risks of data breaches. Ford has been criticized for dismissing external reports of vulnerabilities.
• According to CCPA Metrics from 2023, there were 96 requests for data to be deleted, and seven of these requests were denied.

User freedom

• Limited opt-out options: Ford’s default settings opt users into data collection, with no clear path to fully delete data. Passengers and secondary drivers must also be informed of data collection, placing the burden on the primary user.
• Forced connectivity: Features like FordPass require data sharing for basic functionalities (e.g., remote start, tire pressure checks), limiting user choice.

Business model

• Data monetization: Ford’s business model leverages user data for targeted advertising, joint marketing, and partnerships (e.g., Sirius XM). This aligns with broader industry trends where data is a revenue driver.
• AI and surveillance: Investments in AI (e.g., Baidu’s SYNC system in China) enable deeper user profiling, raising ethical questions about surveillance and consent.

Market control

• Dealership consolidation: Ford’s acquisitions of dealerships (e.g., Freedom Ford) have drawn scrutiny from competition regulators. While deemed non-antitrust, such consolidation can reduce local competition and consumer choice.
• Dependence on connected services: By integrating AI and IoT (e.g., autonomous vehicles, CarStory analytics), Ford reinforces market dominance in connected car technology, potentially stifling smaller competitors.

Anti-consumer practices

• Patents regarding consumer data

They have secured patents for systems that are unrelated to core driving functions and involve consumer data collection. One patented system can deliver targeted advertisements based on in-vehicle conversations, while another relates to vehicle repossession and allows for access restrictions (e.g., in cases of missed payments). Ford has clarified that holding these patents does not necessarily mean they will be implemented in future products. However, the existence of such systems could influence consumer perceptions of the company and affect their willingness to accept certain sales terms.

• Engineering practices

Some engine designs use a rubber belt—rather than a metal chain—to drive the oil pump. This belt operates submerged in engine oil and may wear out prematurely, potentially leading to a sudden loss of oil pressure. Additionally, they have released transmission systems in certain Fiesta and Focus models that have experienced issues, including loss of power during acceleration, gear shifting, or at constant speeds, as well as unintended acceleration. It has been reported that a software update rendered a vehicle inoperable.

Ford has had the highest number of vehicle recalls in the U.S. in 2021, 2022, and 2023. While recall volume can be influenced by market share, larger automakers often have more recalls, it may also reflect differences in production quality compared to competitors.