Heba Elsherif  |  March 29, 2017

Category: Consumer News

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Ford sign and flags near Ford selling and service center.Ford Motor Company has reached a settlement that addresses a class action lawsuit that accused the company of selling Ford Focus and Ford Fiesta vehicles with malfunctioning transmissions.

Plaintiff Omar Vargas, initially filed the lawsuit in 2012, complaining of a transmission defect. After signing the lease of his new 2011 Ford Fiesta, Vargas says he had to make multiple trips to Ford dealers to have the transmission checked out.

According to the plaintiff, nothing seemed to be able to fix the transmission problem. Vargas’ complaint alleges that Ford Motor Company knew about the transmission defect but decided not to forewarn their customers of the issue. Vargas’ lawsuit was consolidated with a similar class action in 2015.

“The complaint alleged that the transmission, which Ford billed as a new type of transmission that combines the best features of automatic and standard transmissions, causes class vehicles to slip, buck, and jerk and to suffer sudden or delayed acceleration and delays in downshifts,” the Ford class action claimed.

The settlement relieves the plaintiffs and all Class Members who owned or leased a 2011-2016 Focus or 2012-2016 Fiesta vehicle with several substantial restorative measures including and not limited to: cash payments, reimbursements, and credit towards the purchase of a new vehicle.

The proposed settlement has multiple key elements, the first of which, grants Class Members cash payments partly for the inconvenience of having taken their vehicles back to Ford dealers for repairs. This cash payment does not exclude customers who did not incur any out-of-pocket costs while doing so.

Moreover, customers who have had, “three or more service visits for a replacement of one of the primary transmission parts will receive $200 for the third visit,” the settlement documents explain. This returned service fee will increase with each additional visit.

The settlement further discusses that “In lieu of cash, Class Members may elect to receive a Vehicle Discount Certificate (‘Certificate’) toward the purchase of a Ford vehicle for twice the cash value. Class Members may collect up to $2,325 in total cash payments or $4,650 in Certificate value.”

Class Members can also replace their defective vehicles or repurchase a new vehicle through an “arbitration program” within a span of one or two months. Those consumers who may have also been incorrectly charged or were not able to repair their vehicles can purse warranty claims, as well, under what is called a “Warranty Arbitration.”

The settlement further allows consumers entitlement to full reimbursement for those who had replaced a clutch a third time within a five- year span or 60,000 miles. Ford will also provide their dealers, “with language designed to make prospective buyers aware of issues related to the unusual characteristics of the transmission,” the settlement claims.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiffs are represented by Jordan L. Lurie, Tarek H. Zohdy, Cody R. Padgett and Karen L. Wallace of Capstone Law, Russell D. Paul of Berger & Montague and Thomas A. Zimmerman Jr. of Zimmerman Law.

The Ford Defective Transmission Class Action Lawsuit is Omar Vargas, et al. v. Ford Motor Company, Case No. 2:12-cv-0838, in the U.S. District Court for the Central District of California.

UPDATE: October 2017, the Ford PowerShift transmission class action settlement is now open. Click here to file a claim. 

UPDATE 2: On Feb. 2, 2018, objectors have urged the 9th U.S. Circuit Court of Appeals to reject a proposed $35 million Ford transmission defect class action settlement, claiming that many Class Members will not receive meaningful relief.

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255 thoughts onFord Settles Fiesta, Focus Transmission Defect Class Action

  1. John A Keyser says:

    Anyone believe that Ford filed this lawsuit so that they would not have to pay and the lawsuit would go away.
    4 month in the 9th circuit???? I

  2. Fred Impens says:

    I have a 21st century Edsel , Ford built and sold a badly engineered transmission and put it in their Freestyle, Five Hundred, and Montego. They discovered the defect when owners of the cars had problems with the transmission within the first year of ownership. They replaced the transmission under warranty but with the same defective transmissions and continued to produce these cars for 2 years never correcting the transmission issues and continued replacing the transmissions under warranty WHEN they went out and then discontinued production of those vehicles and swept the problems under the rug never recalling the transmission or fixing the problems. Now they don’t even produce parts for them anymore. Those of us who own these vehicles are stuck with them WHEN the transmission inevitabley fails. I contacted Ford customer service and was informed I needed to write a letter ( no email or phone number available) to Philip Perry in customer relations as HE was the only one who could or would do anything for me. So I did. About 2 months later I get a form letter back not from Mr. Perry who I told I had to write to directly but from a customer service representative who stamped her first name at the bottom Dorothy stating that ” they were supporting the previous decision ” which to my knowledge there was no previous decision which was why I HAD TO WRITE A LETTER DIRECTLY TO PHILIP PERRY WHO DIDNT EVEN TAKE THE TIME TO RESPOND TO ME HIMSELF I TRULY DON’T THINK HE EVER EVEN SAW THE LETTER! So basiclay FORD said SCREW YOU TO ALL OF US WHO ARE STUCK WITH THESE CARS! There is even a class action lawsuit pending for years that they haven’t done anything about. They just waited 10 years and discontinued offering parts for the bad transmissions in hopes people would just give up on them and buy new cars and Ford would never need to deal with these issue! Like I said a 21st century EDSEL ! I always thought Ford was better than that . Look what they did with the Pintos, and when SUVs were rolling over they addressed those issues BECAUSE PEOPLE WERE GETTING HURT OR WORSE ! They won’t do anything about these cars until people get rear ended on the freeway when the transmission fails and their speed drops and they can’t accelerate or the car lurchesfor or back causing serious accidents. DO PEOPLE REALLY NEED TO GET HURT BEFORE FORD WILL ADMIT THEY BUILT AND SOLD A DEFECTIVE TRANSMISSION AND NEVER RECALLED IT OR MADE IT RIGHT WITH THEIR CUSTOMERS?! Shame on Ford Motor Company ! YOU SHOULD BE BOYCOTTED Maybe this needs to go to the media

  3. derek dubois says:

    My wife and I have a 2014 Ford Focus and when we were buying the car, we noticed some hesitancy in the transmission. We were told that it was the type of fuel injected transmission that made it do that. From day one, we have had problems. We have had the clutch replaced and the air conditioner quit working on speed 3 and barely blew on 1 and 2. We had to pay for the regulator and the blower deposit. At the same time, we had to get the clutch and snap ring replaced. We have had nothing but problems from this car!! We went to the dealership this past weekend that our family has bought 11cars/trucks from to try and trade it in. Of course, they acted like they had never heard of such a thing. Well, now the air/heat has stopped completely. They denied us financing even though we have made 22 payments on time and made no effort to check to see about the air conditioner. The transmission is so bad now that I fear for my family’s safety. It stalls on take off and numerous times, we have barely made it out of the way of a car. I fear a bad accident and now we are paying over 350.00 a month for a car with no air/heat. Noone here will help us or even acknowledge that there is a problem when we mention it.

    1. Top Class Actions says:

      The settlement is currently under appeal. You can try contacting class counsel with your questions: http://fordtransmissionsettlement.com/class-counsel.aspx.

    2. April says:

      I have the same issue with my 2014 ford focus as well!!!! Same exact problems! I can’t take my car anywhere other than to important absolutely necessary excursions! I as well have and make payments that are over $350 month! This is absolutely ridiculous! I should not be having these issues with an unsafe car! I am waiting for the clutch to go out any day now and I don’t see how I am responsible for these repairs when in fact this is the 4th transmission issue and I can’t take it anywhere long distance and this is obviously a bad move on Ford!!!!! Sickening!!!

    3. Emily says:

      My family is in the same situation. We are currently paying over $350 each month for a Ford Focus that will barely run. It’s the transmission problems that everyone else is experiencing. We have taken it to the Ford dealership time and time again, each time they pretend that it’s been fixed and we pick it up and within a few short weeks the problems return. Finally after the last stint in the shop one of the repair men admitted to me that Ford has no idea how to permanently repair this transmission flaw and they will continue to offer these temporary repairs.
      I am beyond frustrated at this point. I submitted a request for Ford to repurchase my car and was denied almost instantly. Instead they’re now offering me a single payment of $825.
      I don’t know what in the world to do. I owe thousands of dollars still on this vehicle that is a total piece of crap. Anyone have any advice???

    4. Tracy says:

      Yep I was told the exact same thing when I bought my 2014 ford focus that ford makes the transmissions like that I recently called the dealership about the transmission problems and now the radio wont even work, driver side headlight plug is fried also and guess what they wouldnt even return my phone call.

  4. StephanieJ says:

    So now the frauds at Ford want the lawsuit dismissed???? I hope Ford goes bankrupt!!!!

    1. April says:

      Yeah I am sickened by their lack of responsibility all because they don’t wanna pay for their F*ck Ups! Excuse my language but I am beyond mad!!!

  5. Rhonda says:

    I just bought a 2014 ford focus Se, no one told me about no transmission problems, but the car is doing what has been described in the lawsuit! These cars need to be taken off the road if ford can’t do better than this! My first and my last ford!

  6. Angela Lutomski says:

    I bought a new 2014 focus se and have taken it back to the dealer multiple times for hesitation, bucking, deceleration while driving. A salesman at the dealership told me he never would have sold me this car because of the transmission problems. Great, I’m a senior citizen and this is the first new car I have ever bought and its a known lemon by ford. Thank you ford.

  7. Jo Hanson says:

    I have a 2014 Ford Focus and I have thought maybe there was something wrong with my transmission and I discussed this with a mechanic at the Ford dealership and service and I was told that that is just the way the transmissions are in my car

    1. Julianne says:

      same experience. Now my car is real bad.

  8. Roger Carter says:

    Can someone please help me with this because I can not find a lawyer

  9. Rich says:

    Based on the below update on this lawsuit status don’t expect any compensation from Ford any time soon !!!!!!!!!!!

    Class members can now submit claims for benefits under the settlement, but please be aware that claims will not be processed or paid, and no arbitrations will take place, until the Effective Date.

    Please be advised that an appeal of the Court’s Final Approval of the Settlement has been filed, and the Effective Date cannot occur until the appeal has been resolved, which could take more than a year. Please check this website frequently for updates.

    1. Top Class Actions says:

      The settlement was granted final approval and the Ford PowerShift transmission class action settlement is now open. Here’s the TCA article with the settlement details and link to file a claim: https://topclassactions.com/lawsuit-settlements/lawsuit-news/823909-ford-powershift-transmission-class-action-settlement/.

      1. Rich says:

        Here’s a link to another site that clearly states an appeal of this settlement has been filed…..”

        Please be advised that an appeal of the Court’s Final Approval of the Settlement has been filed, and the Effective Date cannot occur until the appeal has been resolved, which could take more than a year.”

        http://www.fordtransmissionsettlement.com/

        Although you can file claims you may wait a long time for any resolution!!

        1. Lisa says:

          Who filed the appeal, does say anyone know?

    2. April says:

      Disgusting isn’t it?

  10. Bill says:

    Anybody know what my options are ?I had a 2012 focus, did the software update and nothing happened. It was a lease. Turned it in. I have a 2016 focus lease now. Haven’t taken it in Because nothing was fixed my first time taking the 2012 in. Am i elgible for any benefits ? Or do i need to take it in to get it looked at still ?

    1. Rich says:

      No repairs = no benefits unless you pursue the buy back option. A better question is why you leased another Focus after your experience with the 2012?

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