AUTO INDUSTRY NEWS

Ford Powershift drama results in AUD10,000,000 fine

Ford Powershift drama results in AUD10,000,000 fine image

Anton Andres / Ford | May 04, 2018 10:54

Australian courts fine Ford for faulty Powershift Transmission

It has been reported that Ford's Powershift transmission has had its fair share of problems. While the automaker has been making ways to address the issue, Ford's Australian customers, and the courts, aren't happy with the way it was handled. As it turned out, there are customers who requested, but did not receive, a refund or no cost replacement for a new transmission.

Ford Australia has issued a statement regarding the handling of customer complaints surrounding the Powershift transmissions. The automaker and the Australian Competition and Consumer Commission have agreed on a penalty of 10 million Australian dollars, on top of a settlement.

Australian courts fine Ford for faulty Powershift transmission refunds

With that, Ford will be paying a penalty and implement a consumer redress scheme relating to its response to customer requests for a refund or no cost replacement of select vehicles fitted with PowerShift automatic transmissions. Besides the penalty, Ford Australia will be obliged to replace the transmissions at no cost for certain Ford Focus, Fiesta and EcoSport models fitted with the DPS6 units. Customers may also opt for a refund.

“We were overwhelmed with the volume of complaints and, while it was not intended, over a ten-month period our processes were inadequate and information provided was either inaccurate or incomplete. We let our customers down and for that we are sorry. We are committed to making right with these customers,” said Graeme Whickman, ‎president & CEO Ford Motor Company, Australia.

Australian courts fine Ford for faulty Powershift transmission refunds

Ford Australia's plan of action are as follows:

-Establishing an independent complaints review program for customers who requested, but did not receive, a refund or no cost replacement vehicle between May 1, 2015 and November 1, 2016, when the Owner Loyalty Program was in operation

-Committing to a customer service charter and making information more easily accessible for customers, including about their rights under consumer law

-Upgrading and independently reviewing its Consumer Law Compliance Program and Complaints Handling System

-Improving consumer law compliance training for employees, dealers and customer service staff.