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Two automakers with recent quality problems have the upped the ante for salaried employees: Improve quality or expect smaller bonus checks.

Ford Motor Co. and General Motors Co. have revised the formulas they use to determine bonus checks for tens of thousands of white-collar workers, putting a greater emphasis on quality.

“Many of the companies are trying to do whatever it takes to increase their quality level,” said David Cole, chairman emeritus at the Center for Automotive Research in Ann Arbor. “Companies have generally focused on profitability, but right now quality is a center-stage item. If you have better quality, you’ll likely have better financial performance.”

About 26,000 salaried Ford employees worldwide, from administrative assistants to engineers to CEO Alan Mulally, could earn smaller bonuses this year if the company fails to meet its own quality standards.




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Ford And GM Zero In On Novel Policy - Tie Bonuses To Quality

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