Ford Proposes $30M-plus Settlement in Transmission Suit
The American Auto Giant Ford has recently offered a $30 mln out-of-court settlement of a lawsuit related to failure-prone Powershift transmissions installed in 2012-2016 Focus and 2011-2016 Fiesta models. Numerous lawsuits, including a collective court action that was initiated in April 2017, have been filed on behalf of car owners unsatisfied with the Powershift (also known as DPS6) unit performance.
Transmission solutions similar to the
Powershift unit commonly shift rougher than other automatics to which US
drivers are used to. It is known that Focus/Fiesta drivers frequently had to
visit repair shops because of transmission quality issues, which manifested
themselves in faulty clutch and clutch seals. Ford representative T.R. Reid claimed the
company considers the settlement offer is “just” and hopes it to be accepted at
the hearing scheduled for next month.
According to media sources, the affected party
of this scandalous lawsuit includes almost 2 mln people who own or formerly owned
ill-fated Fiesta/Focus models. Complementary to the $30 mln for cost recovery
payments, the whole procedure of compensations delivery as well as a buyback
program for defective vehicles will be significantly simplified.
The responsible authority NHTA was unable to
find proof that the Powershift units may pose any safety threats on the road.
Lawsuits materials say that the automaker knew the problems before both budget
models hit the market, but legal authorities did not confirm this allegation.
At the end of last year, by decision of a court
Ford was obliged to pay $23,000 to the owners of a 2014 Ford Focus for breaking
consumer protection laws. Two complainants stated before the court that their
leased Focus cars had issues with the gearboxes that “caused them to feel unsafe”.
Moreover, last summer the automaker also decided to extend Powershift warranties
on more than half a million of affected Fiesta/Focus models.
Ford has previously denied any claims in lawsuits that it was aware of the fact that Powershift units were defective long before the scandal broke out, or that Powershift transmissions could cause life-threatening situations on the road. Ford has claimed many times that there are no significant technical issues with the transmission unit, and the vehicles are safe to drive. The transmission hasn't been officially identified as a cause of serious injuries or death. Drivers frequently complained about the transmission "slippage" or "stuttering". In February 2018, an appeal claim made in U.S. Court of Appeals argued that the sum of the settlement offer ($35 mln) was not good enough, and demanded the settlement to be overturned.
