The Citizen (KZN)

Ford SA starts settlement talks

KUGA DEATHS: COMMISSION PLANNED TO PROSECUTE

- Roy Cokayne Jimmy family Bigger impact

NCC says negotiatio­ns with Ford are expected to be finalised by end October.

Ford Southern Africa has initiated settlement negotiatio­ns with the National Consumer Commission (NCC) over the latter’s plans to prosecute the car manufactur­er for alleged contravent­ions of the Consumer Protection Act (CPA) related to the Ford Kuga 1.6 Ecoboost.

Under pressure from the NCC, Ford in January 2017, launched a voluntary safety recall for 4 566 Kuga 1.6l models to address an engine overheatin­g problem that until that date had caused fires in at least 39 such models.

NCC deputy commission­er Thezi Mabuza confirmed this week Ford had initiated settlement negotiatio­ns but that the matter was still subject to negotiatio­ns.

Ford SA GM of communicat­ions Minesh Bhagaloo says it is communicat­ing with the NCC and until these discussion­s have concluded,

it can’t comment.

Mabuza indicated the negotiatio­ns with Ford are expected to be finalised by end October. “At this stage we are not in a position to divulge Ford’s basis of the offer.”

Mabuza confirmed the National Consumer Tribunal could, in terms of the CPA, impose an administra­tive fine of a maximum 10% of the respondent’s annual turnover during the preceding financial year, or R1 million.

It is believed Ford has concluded a settlement with the family of Reshall Jimmy, who was found dead in his burnt-out 2014 Kuga on December 4 2015.

His family has consistent­ly claimed an electrical fire caused his death and denied allegation­s that he had been murdered or committed suicide.

The Jimmy family earlier this week withdrew from a Western Cape High Court inquest into his death.

Asked whether Ford had approached the family with any agreement Renisha Jimmy, Reshall Jimmy’s sister, told 702 Live: “I’m not at liberty to discuss that. We have come to a resolve and that is where we are.”

Bhagaloo declined to confirm or deny that Ford had entered into a settlement agreement. “Ford will continue to cooperate fully with the justice system and the affected parties to understand what transpired,” he said. Then-NCC commission­er Ebrahim Mohamed told parliament’s portfolio committee on trade and industry in March 2017 that the NCC investigat­ion into the Kuga was prompted by complaints raising issues beyond the 1.6l model safety recall. In a subsequent presentati­on in 2018, Mohamed said the categories of complaints lodged included:

We have come to a resolve and that is where we are

Those specifical­ly relating to burnt Ford Kugas;

Those alleging defects other than fires;

Those alleging economic loss due to an alleged drop in the Kuga value and therefore the trade-in or resale value;

Consumers apprehensi­ve that their safety and lives were at stake and therefore didn’t want to drive Kugas; and

Complaints that didn’t relate to Kugas but to other Ford models that evinced the same issues (alleged fires and defects).

 ?? Picture: Moneyweb ?? JOB DONE. Neale Hill, MD of Ford South Africa and sub-Saharan Africa, confirmed last month that all but 34 of the Ford Kuga models subject to the recalls had been brought in by their owners for the necessary remedial work to be done.
Picture: Moneyweb JOB DONE. Neale Hill, MD of Ford South Africa and sub-Saharan Africa, confirmed last month that all but 34 of the Ford Kuga models subject to the recalls had been brought in by their owners for the necessary remedial work to be done.

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