$10m fine for faulty Ford gearboxes

E: north.geelong.sc@edumail.vic.gov.au CAR maker Ford has been fined $10 million after it wasted the time and money of thousands of customers who bought vehicles with faulty gearboxes.

It is the equal-largest penalty ever for a breach of Australian Consumer Law, matching that given to Coles in 2014 for misconduct towards suppliers.

The consumer watchdog took action against Ford Australia for mishandling customer complaints over cars that shuddered, jerked or lost power because of faulty transmissions.

Some customers were told it was their driving style causing the clutch problems, despite Ford knowing the gearbox was at fault, the ACCC said.

The Federal Court yesterday confirmed the $10 million penalty for engaging in unconscionable conduct relating to about 10,500 customer complaints between May 2015 and February 2016. The complaints were over Ford’s Focus, Fiesta and EcoSport models sold between 2011 and 2016, which were fitted with a PowerShift transmission. The gearboxes in many cases failed repeatedly and customers were made to pay for replacement vehicles.

“In most cases, Ford refused to provide a refund or no-cost replacement vehicle to consumers, even after vehicles had undergone multiple repairs,” ACCC chairman Rod Sims said.

Ford has promised to establish a redress scheme and “make it right” with the customers who were mistreated.

“We took too long to identify the issues and we acknowledge that PowerShift customers did not have complaints handled appropriately,” Ford Australia’s chief executive Graeme Whickman said in a statement.

Ford will pay $500,000 towards the ACCC’s legal costs.