Ford Is Facing Mega Lawsuit Over Allegations, $4 Billion Selling Faulty Vehicles.
Let’s face it, the automotive industry is one that’s pretty cutthroat. ...
Let’s face it, the automotive industry is one that’s pretty cutthroat. Each and every automaker has to try and maximize their margins while pushing as many units as possible. With this pressure comes the need to succeed. This sort of influence can call for automakers to innovate in order to meet that need. However, with the added pressure, we have seen even the most respected names in the industry crack. After all, it wasn’t that long ago that Dieselgate flipped the entire community on its head. We all remember the scandal that exposed Volkswagen for cheating on emissions.
The latest automaker on the hot seat is, you guessed it, Ford. What is it that has owners up in arms and raring to grab reimbursement from the blue oval? Via the Detroit Free Press, “More than 1.9 million unhappy customers who purchased or leased a Ford Focus or Fiesta say the company lied to unload cars with faulty transmissions on unsuspecting buyers and then blamed the drivers for problems they experienced.”
The article continues that “Ford customers claim in legal filings their 2012-16 Focus and 2011-16 Fiesta sedans were built with dual-clutch transmissions prone to “shuddering, slipping, bucking, jerking, hesitation while changing gears, premature internal wear, delays in downshifting and, in some cases, sudden or delayed acceleration.”
We’re told that if they lose, this means that Ford is facing up to $4 billion lost. It’s kind of hard to tell, in these situations, when we have an honest plaintiff. America has gotten the reputation of being a little bit sue happy after all. It seems like shareholders aren’t taking the claims all that seriously just yet. As Ford has been on a recent upswing throughout 2019, the breaking news hasn’t seemed to cause much volatility.
In response to the allegations, Ford told the Detroit Free Press “Ford is committed to providing our customers with top-quality vehicles. We continue to deny the allegations in this lawsuit, but rather than continuing with the litigation, Ford entered into a settlement agreement with lawyers representing these plaintiffs. That settlement is fair and appropriate and we look forward to final court approval.”