mobile-menu-icon
Ford Authority

Ford Transmission Settlement Includes Buyback Option, Affects 2 Million Customers

FoMoCo’s PowerShift six-speed dual-clutch transmission in the last-generation Focus and Fiesta has proven to be rather problematic for The Blue Oval. The gearbox has been the subject of various class-action lawsuits in the U.S. as well as around the world, with the suits referencing shifting issues and various quality concerns. The U.S. suit has now come to an end, and a settlement has been reached.

In short, Ford Motor Company will pay out a total of $77 million to customers as part of this Ford transmission settlement, and compensation will range from a $20 inconvenience payment to a fully-fledged vehicle buy-back.

To be eligible for the buy-back option, an original owner of a 2011 to 2016 Fiesta or 2012 to 2016 Focus equipped with a PowerShift dual-clutch “automatic” transmission must have taken his or her vehicle in for transmission repairs at least four times during the original 5-year/60,000-mile warranty.

For those who would like the wording of the lawsuit itself, here are the bits that really matter:

The Court finds that Plaintiffs and Ford have provided ample information confirming that Class Members have already received $47.4 million in gross cash payment from claims for Repurchase. It is reasonable to expect that many additional Class Members will receive cash payments from claims for Repurchase after final approval of the Amended Settlement. The Court further finds the Amended Settlement can be valued by Ford’s guarantee of a $30 million minimum payment for the cash payment (for Service Visits for Transmission Hardware Replacements, Software Flashes, and the $20 payment by sworn declaration) provided by the Amended Settlement. The Court finds that, under the terms of the Settlement, Ford has already paid, or is committed to pay, at least $77.4 million.

The Court finds that the Repurchase benefit provides strong relief to the Class by modifying lemon laws to favor Class Members. This includes an extension of the statute of limitations for Claimants and a Settlement-created fallback standard authorizing a Repurchase if the Claimant had had four transmission hardware repairs within 5 years/60,000 miles of delivery to the first retail customer, and the vehicle continues to malfunction. The Amended Settlement provides additional valuable Class relief by extending the statute of limitations to seek Repurchase to former owners/lessees and by allowing former owners/lessees to seek Repurchase under the Settlement-created fallback standard. The Amended Settlement’s modifications to the Arbitration Program, including eliminating the “final repair” option for Ford before Class Members with fewer than four Transmission repairs can proceed to arbitration and permitting an award of civil penalties, under limited circumstances, to Class Members residing in states that have laws authorizing civil penalties for lemon law claims, is also valuable. It is also reasonable to expect that, as a result of the additional benefit of a one-time $20 payment to Class Members who submit a sworn declaration attesting to having a repair denied, the Amended Settlement will benefit more Class Members than would the original Settlement.

Ford’s PowerShift transmissions were built by Getrag Ford Transmissions – a joint-venture between Ford and the world’s largest automobile transmission supplier.

Additionally, this isn’t Ford’s first transmission-related lawsuit, as a Massachusetts resident is suiting the automaker for the 10R80 10-speed automatic transmission used in the F-150 pickup truck. That suit was filed earlier this year.

Subscribe to Ford Authority for more Ford Fiesta news as well as more Ford Focus news and around-the-clock Ford news coverage.

Frankie's first favorite car was a 1968 Ford Mustang, and he's had a strong appreciation for the nameplate ever since. Later in his youth he became infatuated with Eleanor, thanks to Nicholas Cage's stellar performance. Frank's a real jokester, too.

Subscribe to Ford Authority

For around-the-clock Ford news coverage

We'll send you one email per day with the latest Ford updates. It's totally free.

Comments

  1. M. S. Watchdog

    ‘‘This Settlement is a bad April Fools joke! Ford designs, Engineers, then builds this piece of crap and the the Customers suffer and have to fight for their rights when Ford jerks the around when it fails. FOMOCO has become today’s Recall King!

    Reply
  2. Mark L Bedel

    It’s interesting to look at this issue from the supply side. I’m assuming that this transmission was sourced from one of their driveline suppliers, Borg Warner, Getrag or another. Who in the Ford approval chain is vetting these contracts, and what kind of verification / testing procedures are they using to protect not only the company but more importantly their customers? Granted, no one is perfect, but when you have these kinds of $$$ on line plus your company’s reputation, I would think that the outside product approval chain would be much a tighter. I purchased a 2016 Focus ST2 just to avoid the problematic transmission, (plus I just enjoy manual transmissions), and have had 47,000 trouble free, and might I add enjoyable driving miles. But my daughter alas, purchased a 2015 Fiesta with an automatic…and well…

    Reply
  3. JOHN MAJDALANI

    While this $77,000,000 might seem like a small price. They will lose millions (or maybe billions) when customers (like me) purchase their next vehicle from a competitor. This along with their $1.7 billion loss in Q4 in 2019, and before anyone heard of the Coronavirus was on track to lose $600 million in Q1 2020. Now their stock price is trading at $4.87/share and will probably head lower.

    Reply
  4. Frank B.

    I own a used 2015 Ford focus, I still have two years to pay off the loan and was not informed of any issues with the car at all when only finding out about the transmission problems a year after I bought the vehicle. Is there any program that Ford will buy the car back pay off my loan so I can get rid of this thing?

    Reply
    1. Jacqueline Darlene Williams

      Good luck with that thought. I am involved in a mass action lawsuit with ford over my 2015 Focus. I asked one of the lawyers about what you brought up. How can ford continue to sell these cars knowing there are problems. Would Ford have to stop selling these used cars to buyers? There is no fix for the tranny problems. When the warranty runs out the consumer is just stuck with a worthless car. Every time I see someone get out of their Focus I ask them how they like the car. One young lady told me she just bought the car, and she thinks the car has a transmission problem, but the car lot told her she has a 100,000-mile warranty. Ford is morally bankrupt. It’s all about the money. Australia fined Ford 10 million for reprehensible behavior.

      Reply
  5. Gwen Speas

    I have a 2016 Ford Escape with 128,000 miles had no issues. Drives great just like the day I brought it. There was a recall on the transmission bearing or bushing I received in the mail letting me know they would contact me when the part was available. Received notice in July 2022. Car started jerking in August 2022. It actually would not moved in the middle of the road. I took it to the ford dealership guess what they had the recall part and put it on but said that might not be the problem. Went to pick up car and drove one mile and it stop again so I took it back to Ford and they now say I need a new transmission for 6400.00!!! I feel this is not right. Why did Ford wait so long to send the recall letter but never let me know when the part would be available. I called ford and made a complaint and was basically told that is all it was is a complaint to be logged. My car is paid for and I think ford should buy it back. I will never buy another ford. They use to be top of the line vehicles but not any more!!!

    Reply
    1. Micheal

      The Focus transmission is a DPS6. The Escape is likely a 6F35, and the recall you speak of is to replace a bushing in the shifter cable, which can leave you stranded when you can’t get it out of park, but won’t make the transmission itself fail. Your transmission problem is unrelated to the recall, and the dealer employees have no say over that.

      Reply
  6. Katherine Inez Styer-West

    I have a 2013 Ford Focus SE, I bought it from Hertz used and was not informed of the recalls at the time of purchase. It has ran pretty well, I have kept up with the maintenance on it. During one of my deliveries the check engine light came on and my car started jerking and would not shift into gear correctly. Sitting in the parking lot, I called Alexander Ford of Yuma, AZ and inquired about the problem I was having with my car. I was told by the Service Advisor that it sounded like it was the TCM that was a recall part (he would not know for sure until he tested it) BUT if it was that part that was needed he did not have it available and did not have a delivery date. That there was a recall for over 70,000 of these same parts and that Alexander Ford had at least 6 vehicles sitting on their lot waiting for this part to come in and that one of those cars had been there for 4 months. Service Advisor also told me that there is an aftermarket replacement part that will fix the problem, BUT Ford will not use it and will not allow you to use it to fix your car without denying your right to the recall. I called Ford of Orange (previously Villa Ford) to verify that this part was on a National Backorder with no estimated delivery date. I found it to be true. I was also given Ford Motor Company’s number to call them and get 1 person that gave me the run around and transferred my call back to reception to start over again, twice. I hung up and called back to get a very helpful person that had no tools to help me. She gave me the address to the Fords Comsumer Affairs that I could write a letter too, But no phone number was available to call. I want Ford to buy my car back but they are not willing to do so without further inconvenience and cost to another one of their customers. They say that the car has to have at least 4 repairs done in order to qualify for the buyback and how can you get the car fixed when the part needed is on National backorder…. Is this another loop whole Ford is using to get away with screwing over their loyal customers. Ford knows that this part is a problem and if they cannot provide the part to fix an issue that they are well aware of!!! Why aren’t they offering people a new car replacement instead of a recall letter over and over?!! I am so disappointed in the turn Ford Motor Company has taken. My dad was a retired transmission specialist from Cal Worthington Ford of Long Beach, CA and he also retired from Villa Ford of Orange, CA too. The Salespersons were about helping the customer, finding a reliable car and the work that was done on your, you could count on it being done right. Things have surely changed and sadly not for the better. My son bought his first car at Villa Ford, it used to be a Family Owned and Operated now the corporate has gotten into the family. I will not buy another Ford, they are not trustworthy vehicles anymore. I will be looking into Arbitration with Ford Motor Company… What would be so amazing is if Ford cared enough to call me,send me a letter or email offering to do what is right (buyback my car full compensation of the cost taxes licensing and fees for my Ford Focus SE. I wont hold my breath! So SAD!

    Reply

Leave a comment

Cancel