Ford is off to a rough start in 2026. The company just reported its worst earnings miss in four years as EV investments fail to deliver. Making matters worse, Ford is already leading in 2026 automaker recalls at a time when the company is aiming to better its reputation with consumers.

Less than two months into the new year, Ford has issues seven recalls for Ford and Lincoln models. At the same time, the company is boosting employee bonuses after reporting improvements in “initial quality.”

Two very different headlines. Let’s break it down.

Ford Leads the Industry in 2026 Recalls

According to the National Highway Traffic Safety Administration (NHTSA), Ford has issued seven recalls in the first 40 days of 2026 alone. Those recalls have already impacted 123,448 vehicles under the Ford Motor Company umbrella.

Models affected this year include the Ford Explorer, Ford Escape, and Ford Transit, among others. Some Lincoln models have also been impacted.

If you own a Ford or Lincoln, it’s worth running your VIN through NHTSA’s free recall lookup tool. Ford CEO Jim Farley has recently hinted that more recalls are likely as the company ‘gets to the root of the problems’, so it would be wise to check your car regularly in 2026.

One Difficult Year After Another

Ford’s early lead in 2026 follows a difficult 2025. Last year, Ford recorded more than 150 recalls affecting roughly 13 million vehicles, earning the unofficial title of “most-recalled manufacturer.” The year before that, Ford was neck-and-neck with Tesla for the same distinction.

So while it’s still early in 2026, the trend hasn’t exactly reversed.

For context, Hyundai Motor America currently sits in second place this year with four recalls so far.

Ford Boosts Bonuses After ‘Initial Quality’ Improves

Here’s where things get interesting. Despite the recall count, Ford leadership recently announced higher companywide bonuses tied to improvements in vehicle quality.

According to reporting from Reuters, CEO Jim Farley told employees during a town hall that bonuses would be set at 130%. The move came after Ford delivered on its goal to improve “initial quality” — a metric that measures repairs in the first 90 days of ownership.

Farley reportedly told employees that initial quality is the best it has been in a decade. He also described the higher payouts as an investment in workers as the company works toward an 8% EBIT margin by 2029.

Ford has struggled for years with high warranty costs and repeated recall campaigns. Farley has previously acknowledged that recalls could rise in the short term as the company works through lingering issues. His argument: initial quality is the better indicator of whether Ford’s turnaround efforts are working. Recalls don’t matter, at least not yet.

On paper, Ford leads the industry in recalls yet again. Internally, leadership says quality metrics are improving in meaningful ways. Strange times indeed for car buyers on the hunt for a reliable, well-built car. 

The Bottom Line

Ford’s early 2026 recall numbers are hard to ignore. Seven recalls in 40 days affecting over 120,000 vehicles is not a good look.

At the same time, the company says its vehicles are performing better in the first 90 days of ownership than they have in a decade, and it’s rewarding employees accordingly.

Both things can be true.

Recalls measure one side of quality. They usually pertain to safety defects and regulatory compliance. Initial quality measures early ownership experience. They don’t always move in lockste, so it will be interesting to see how both evolve in 2026.

For now, Ford remains under a microscope. Whether 2026 becomes another record year for recalls, or the year quality truly turns the corner, is something we’ll be watching closely.

Don’t forget to check your car or truck for recalls. That free tool could become a Ford driver’s best friend if the trend continues this year.