Ford Settles Lawsuit over Focus, Fiesta PowerShift Dual-Clutch Transmission

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The automaker will pay a minimum of $ 30 million cash to reimburse owners of the small cars made between 2011 and 2016, who complain about repeated failed repairs.

 

UPDATE 3/6/2020: A federal judge approved the settlement Ford offered in late January wherein the automaker will repurchase thousands of defective Fiesta and Focus vehicles for up to $ 22,000 each, according to the Detroit Free Press.

Ford has proposed an updated settlement of a minimum of $ 30 million in cash reimbursement in a class-action lawsuit over problems with dual-clutch automatic transmissions in Focus and Fiesta vehicles. The settlement could affect as many as two million owners of 2011 to 2016 Fiesta or 2012 to 2016 Focus cars.

The manufacturer has also proposed a simplified method for compensation and vehicle buybacks; Ford has already spent $ 47.4 million on buying back vehicles from customers, according to a filing with the U.S. District Court for the Central District of California. The settlement is up for approval by a federal judge at a February 28 hearing.

 

A Detroit Free Press investigative report last July cited internal documents showing that Ford knew the PowerShift transmission was rough but went through with production plans. Customers complain that the transmission shudders and vibrates when accelerating from a stop and that repeated repairs including clutch or entire transmission replacements don't permanently fix the problem. In August, Ford extended warranties for the affected owners to seven years or 100,000 miles and issued a statement saying, "While these vehicles always were and remain safe to drive, we regret the inconvenience our customers have experienced.”

The final settlement agreement is set for one month from today, February 28.