Media Moves

Ford in million-dollar settlement over transmission suit

January 27, 2020

Posted by Irina Slav

Ford has reportedly agreed to settle a class action suit over faulty transmissions in Focus and Fiesta models.

Phoebe Wall Howard reported the news for the Detroit Free Press

Ford Motor Co. has agreed to settle a class-action lawsuit with nearly 2 million owners and former owners of Focus and Fiesta vehicles with bad dual-clutch transmissions known as the DPS6, according to court documents filed late Friday.

A lawyer who helped broker the deal on behalf of consumers 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,” said Tarek Zohdy of Capstone Law in Los Angeles. “In my opinion, Ford will have to deal with these vehicles until people are done filing their claims.”

He explained, “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.”

Ford lawyers have worked with class-action attorneys to resolve the case, which was filed in 2012. 

“Ford believes the settlement is fair and reasonable, and we anticipate it will be approved by the court following the hearing next month,” Ford spokesman T.R. Reid said late Friday.

Sarah Rahal from the Detroit News wrote:

Ford Motor Co. has proposed a $30 million settlement in a class-action lawsuit regarding faulty transmissions Focus and Fiesta vehicles it no longer sells in the U.S.

Multiple lawsuits, including a class-action suit that began in April 2017, have been filed on behalf of car owners unhappy with the transmissions, known internally as the DPS6.

Dual-clutch gearboxes like the DPS6 typically shift rougher than other automatic gearboxes to which North American drivers are accustomed. The Ford transmissions also needed frequent repairs for quality issues the developed over time with the clutch and clutch seals, among other things.

Ford spokesman T.R. Reid said the company believes the settlement is “fair and reasonable” and expects it to be approved at the hearing on Feb. 28.

“It’s an amendment to a 2017 lawsuit that has been proposed to the court and we anticipate it’ll be approved at the hearing next month,” he said. “There has been a variety of back and forth since then and we believe the amount is fair.”

The lawsuit represents nearly 2 million people who own or formerly owned a 2011-2016 Ford Fiesta or 2012-2016 Ford Focus. In addition to the $30 million in cash reimbursement, there will be an easier process for people to get compensated and a buyback program for defective vehicles, according to the Associated Press.

Subscribe to TBN

Receive updates about new stories in the industry daily or weekly.

Subscribe to TBN

Receive updates about new stories in the industry.