Banks divided over Kuga issue

Not all require safety guarantee on parts from Ford before approving finance

SOUTH Africa’s banks are grappling with how to deal with Ford’s burning Kuga issue. One bank has confirmed that it requires guarantees from the global car manufacturer when processing finance purchasing applications for the vehicle.

In one case, a WesBank client says he was told that‚ before the finance for the sale of his vehicle would be approved‚ he required a guarantee from Ford that a replacement part fitted to the car was safe.

However, the bank says this is not its official policy.

Ford says that the Kugas destroyed in fires on South Africa’s roads since December 2015‚ when Reshall Jimmy was burnt to death in his 1.6l 2014 Kuga‚ caught fire because of a faulty coolant system.

Last week‚ Ford issued a recall for 4 556 Kugas built between 2012 and 2014 to replace the system with a more robust one.

The company‚ however‚ says the fire which killed Jimmy is unrelated to the other fires and started at the rear of the car.

It is‚ however‚ unable to explain what caused that fire.

At least 50 other Kugas are reported to have caught alight since then.

Police investigating Jimmy’s death‚ along with private forensic and fire investigators‚ believe the fire was caused by an electrical fault behind the dashboard on the passenger side of the vehicle.

Several Kuga owners‚ whose vehicles are not 1.6l models‚ have said their vehicle fires were also caused by electrical faults.

Renaldo Vilonel‚ who is selling his 1.6l Kuga because he is emigrating‚ said he had bought his car six months ago.

Shocked at the price he was offered by a Ford dealership when he tried to sell his car‚ he decided to sell it privately.

“It was only then that I learnt of Jimmy’s death and the other fires,” he said.

“I thought I would have problems trying to sell it‚ but I eventually found a buyer.”

Vilonel’s joy was short-lived when he was told that‚ for the finance from WesBank to be approved‚ he would have to provide guarantees from Ford on the parts that needed to be replaced.

“I was told that I needed to get a roadworthy certificate and technical inspection report‚ which wasn’t the problem.

“The problem was that for the sale to be signed off‚ the bank needed a certificate from Ford guaranteeing the repairs and replacement parts and that the car’s electrical system must also be checked out and given the okay.”

When Vilonel returned to the dealership for the guarantee‚ he was told it could only provide him with a letter stating that the repairs would be done, but not when.

When he approached Ford SA‚ they allegedly refused to help him. He said the deal was now in the balance. WesBank spokesman Rudolph Mahoney said‚ in Vilonel’s case‚ it was a matter of the bank’s customer call centre staff looking after the buyer’s interests as they were aware of the reported issues with the Kuga.

“We have established a layer of checks and balances in the finance processes for such private sales‚ including the seller obtaining roadworthy and technical inspection reports to rule out faults with the vehicle,” Mahoney said.

“If there are issues‚ the seller has to fix them before the sale is concluded.”

He said the bank did not discriminate against the sale of Kugas by requiring additional guarantees.

Absa’s Lies Squire said: “On receiving a request to finance a Ford Kuga‚ and the model fits within the range of recall‚ we will require a safety certificate ensuring the safety recall has been remediated.”

Standard Bank spokesman Ross Linstrom said they did not need a guarantee.

Nedbank spokesman Tobeka Lwana said they would prefer not to comment.