Ford denies shonky dealing on dud cars
FORD Australia has rejected allegations it gave customers a bum steer about transmission issues in several of its models and blamed drivers for the problem.
The Australian Competition and Consumer Commission is taking legal action against Ford over its handling of customers who had problems with its Focus, Fiesta and EcoSport cars with a PowerShift transmission bought between 2011-16.
About half of 70,000 cars sold had at least one repair relating to the transmission, the ACCC said. Customers had complained about excessive shuddering and jerking when accelerating, loss of gear selection, sudden loss of power and excessive noise.
ACCC chairman Rod Sims alleges that from 2011 to May 2015 Ford refused to provide a refund or replacement vehicle to most buyers even after multiple repairs had failed to fix the problem.
The ACCC also alleges that from May 2015 until at least November 2016 Ford Australia told customers they could get a replacement car only if they paid towards the new vehicle under an “owner loyalty program” introduced in response to complaints.
It alleges that as of July last year more than 800 customers had paid an average $7000 — a total of $6.5 million — towards replacement cars.
The ACCC’s Federal Court action alleges Ford “engaged in unconscionable and misleading or deceptive conduct” when handling customer complaints.
“Ford’s conduct towards customers who had complained of issues with their vehicles was unconscionable,” Mr Sims said in a statement yesterday.
Ford Australia chief executive Graeme Whickman said the company would fight the allegations.
“We absolutely refute that we have acted in an unconscionable manner,” he said. “At no point did we seek to deny customers their rights under Australian consumer law.”
Mr Whickman said a Department of Infrastructure and Regional Development investigation had found there was no safety issue related to the cars involved.
He said his own mother drove a 2011 Fiesta and he had assured her it was safe.
Mr Whickman said it was wrong to suggest Ford Australia had blamed drivers for the transmission problems. “The transmission actually learns and adapts to a driver . . . but it was never our intent to suggest that the customer was at fault,” he said.
The ACCC alleges Ford also sold vehicles returned under the owner loyalty program without disclosing the past issues experienced with those vehicles to the new buyers.
Mr Whickman said Ford Australia did not sell returned vehicles without first completing any work to ensure they met technical and warranty specifications.
He said repairs were available on PowerShift transmission issues and all new cars on the market had the latest updates.