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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
I have had a 2012 Focus and due to the constant in-shop transmission problem turned it for a 2014 Focus after the salesman told me the 2014 transmission was fixed!! Not so iI had it in the shop so many times the CEO (M Fields ) of Ford was involved.
I got rid of it and then Ford sent me a lawsuit about both vehicles.
I have a 2014 focus, had transmission trouble from the beginning had it worked on three times
and is giving me trouble again.
I have a 2014 ford focus and I have taken my car in for repair about 3 to 4 times already and will need to take it back again for the transmission clutch. My car has been giving me problems since I got it and I have 2 more years on it until its paid off. This was a waste of my time to take off work to take the car in for repair, I waste my hard working money and full coverage on this car. I even tried to turn it in and I get no help on what I can do to get out of this. This is a very inconvenience for me and I am a single mother trying to make things happen and to have an unsafe car for me and my baby to ride in.
My friend bought a 2015 Ford Focus and the transmission was the main problem when she bought it. She says it’s turned into a piece of junk because it jumps allot while she drives it and doesn’t get any speed. Her clutch is also giving her problems after she bought it. She’s had it for 2 years. My warranty should still be good but it hasn’t been fixed yet. I want it fully repaired or another brand new car.
I have had my clutch replaced in my ford focus and now the transmission also . shortly after buying my car july of last year, my stereo stopped working and more problems with my car clutch, transmission, stereo and other problems . please if someone could advise me where to go or send paper work to or a claim form to fill out and wher to send it . please help my car is a pile of junk . 2013 ford focus with 55.000 miles is awful to have a car with low miles and so many problems . Thank you!
I am on my 5th repair of the clutch. I have a 2014 Ford Focus. For all of you paying, please contact the dealership. Last year, I had to pay my deductible since the warranty for the one done prior had been over a year. Last year they told me that I would have a 2 year unlimited mileage warranty on the clutch. I took it in today, because I was having issues again. They called telling me I had to pay, which I fought back with them calling and stating it would be covered. I agree, we should not be paying for something that Ford cannot fix. And now I see there is another recall on my Focus…..thinks it’s time to trade this car in.
I have a 2016 Fiesta that continues to have transmission issues. Every time I bring it to the dealer, they tell me they can’t find the issue because it won’t “act up” while it’s there…. I’ve had other issues that they also refuse to fix even though I’m still covered under my bumper-to-bumper warranty, but that one is by far the scariest and most dangerous…
I bought my 2o14 a month ago did not no there where any problems.my car jumps when you go from a stop to drive and then when you finaly get some speed you can fill it like slips then grabs i dont no what to do
Im dealing with my 2014 ford fiesta shifting gears. The clutch is sticking together which is place in my transmission. My car has been giving me problems since I had it. Ford told me it would be 1700 to change my clutch. Can someone please give me insight on this settlement and what can I do about my car switching gears but it’s an automatic
My 2016 ford fiesta was totalled after it failed to shift on the freeway when a semi truck merged into my lane..where’s the justice here? Bought car new and had it less than a year.