Ford will settle a class-action lawsuit with almost 2 million owners and former owners of Focus and Fiesta models outfitted with its troubled DPS6 PowerShift dual-clutch transmission, The Detroit Free Press reports.
The class-action lawsuit, first filed in 2012, shed additional light on the issue and last year, it was revealed that the American car manufacturer knowingly launched the 2012-2016 Focus and 2011-2016 Fiesta models with defective transmissions.
Related: Did Ford Knowingly Launch Focus And Fiesta With Defective PowerShift Transmissions?
The proposed agreement includes a guaranteed commitment from Ford of $30 million in cash reimbursement to consumers with a record of multiple failed transmission repairs within five years of buying their cars or 60,000 miles (96,000 km). Additionally, Ford will need to simplify a buyback program for defective vehicles and establish an easier process for former owners and people who’ve leased defective cars to be compensated.
Lawyer Tarek Zohdy of Capstone Law in Los Angeles who helped broker the deal said the Ford payout could exceed $100 million.
“There’s no cap. The truth is, Ford is going to have to pay out claims until they’re exhausted,” he said. In my opinion, Ford will have to deal with these vehicles until people are done filing their claims. This settlement is entirely reliant on the consumers’ decision to file a claim. … It’s up to the consumer whether they want to let Ford keep their money. … They created a defective transmission and I wanted to help people get their money back.”
In a statement issued last Friday, Ford spokesman T.R. Reid said “Ford believes the settlement is fair and reasonable, and we anticipate it will be approved by the court following the hearing next month.”
During recent court proceedings, Ford revealed that between October 2017 and the end of 2019, it had bought back 2,666 vehicles for approximately $47.47 million.
