Kuga deal a sellout, say claimants
Consumer body says a prosecution could take years — and fail
● A ridiculous sellout.
That’s how some “bitterly disappointed” owners of Ford Kuga vehicles describe the National Consumer Commission (NCC) after it announced on Friday that the global motor giant will pay a R35m fine to the state and R50,000 cash to those whose vehicles caught fire due to a faulty cooling system.
NCC acting commissioner Thezi Mabuza, however, told the Sunday Times the settlement agreement was “fair and equitable”.
The NCC found that Ford SA was not negligent in its conduct with regard to 56 Ford Kuga 1.6 Ecoboosts that caught fire in 2016, and that it had to date spent R336m in dealing with the fires.
But the NCC found the company had engaged in “prohibited conduct” by distributing vehicles that failed, or could have failed, as a result of a cooling system failure.
Those who feel the settlement is not fair can opt for arbitration through the Consumer Tribunal and NCC or launch a civil case through the courts, said Mabuza.
“If we had gone the route of prosecution in the tribunal it could have taken years to conclude with no guarantee of a favourable result,” she said.
“The investigation showed that Ford, while not negligent, was guilty of prohibited conduct under the Consumer Protection Act. They agreed to this. We achieved what the law empowers us to do, that is to protect the consumer.”
She said the R35m would go to the Treasury and be used in the national fiscus.
Sabelo Cele of Pretoria battled to get his two-year-old son from their burning Ford Kuga in 2017 when it caught alight on the road. “They [the NCC] are sellouts,” said a furious Cele.
“We lost a huge part of our lives in that fire, and my wife and son almost died.
“This R50,000 ‘take it or leave it’ offer is ridiculous. After my fire I was still left with vehicle repayments even though I didn’t have a car.”
He said while he would consider his options, “the problem with the adjudication or civil suits is that Ford has deep pockets and can tie us up in court for years”.
Riaan du Plessis’s Kuga went through three safety recalls and was issued with a compliance certificate every time — but still caught fire in his driveway in April.
“Ford has been given a get-out-of-jail-free card,” he said. “I was screwed over from the get-go. I couldn’t afford a new car, with Ford offering me a replacement but only if I paid in the excess of R14,000. I had no choice. I reported this to the NCC but they have done nothing to help me.”
Durban motorist Nivesh Sewpersadh, whose car burnt in December 2016, demanded to know why the government was receiving R35m “when they lost nothing and we owners, who lost everything, only get offered R50,000”.
For the family of Reshall Jimmy, who burnt to death in his Kuga in December 2015, the settlement was “bitterly” disappointing.
His sister Renisha said: “The R35m should not go to the state but … to compensating the victims. It’s been years of fighting for justice and people are bitterly disappointed.”
She said they were waiting for a decision on the inquest into her brother’s death before deciding on their course of action. They have meanwhile withdrawn a complaint to the NCC after Ford, during the inquest hearing, conceded that her brother had not been murdered or committed suicide, as it previously claimed could have been a possibility.
Mabuza said the R35m fine is the biggest the NCC has issued to date.
She said the settlement took into consideration similar global Ford vehicles fires, compensation Ford had already made to motorists, its conduct with customers and the company’s co-operation with the NCC
“To date Ford has spent R336.8m in regards to dealing with these fires,” she said.
This amount was for extended warranties, trade assist, call-centre support, fuel and car washes and hiring of courtesy cars.
Mabuza said the settlement was being offered on the assumption that Ford had already compensated the owners the market value of their destroyed vehicles.
“If owners are not happy they can go to arbitration,” she said.
Ford SA spokesperson Minesh Bhagaloo said the carmaker is “committed to doing the right thing for our customers”.