Ford rejects ACCC’s claim it misled customers on faulty gearbox

Ford has vowed to fight the ACCC’s charges that it lied about transmission problems across its vehicle range.

ACCC chairman Rod Sims at the media conference in Brisbane yesterday.

Car giant Ford has strongly denied claims from the consumer watchdog that it lied about transmission problems across its range, after the ACCC announced it had commenced court proceedings.

The Australian Consumer & Competition Commission said yesterday it had launched Federal Court proceedings against Ford Australia for selling Ford Focus, Fiesta and EcoSport vehicles with faulty PowerShift transmission between 2011 and 2016.

The ACCC alleges Ford has engaged in “unconscionable and misleading or deceptive conduct, and made false or misleading representations in its response to customer complaints”.

The move marks the latest legal challenge for global carmakers stemming from safety concerns. It also comes on the heels of the ACCC taking legal action against Volkswagen over its diesel emission claims.

The watchdog said about half of the 70,000 Ford vehicles sold had at least one repair relating to the transmission, with customers complaining about “excessive shuddering and jerking when accelerating, loss of gear selection and sudden loss of power and/or excessive noisiness”.

“From 2011 to May 2015, Ford allegedly refused to provide a ­refund or replacement vehicle to consumers, even after vehicles had undergone multiple repairs that had not fixed the issue,” ACCC chairman Rod Sims said.

“In most cases, Ford only provided replacement vehicles in ­accordance with its ‘PowerShift Ownership Loyalty Program’, which required consumers to make a significant payment ­towards a replacement vehicle.

“The ACCC alleges that Ford misrepresented to customers who made complaints that the issues with their vehicles were caused by the way the driver handled the ­vehicle, even though Ford was aware of systemic issues with the vehicles from at least 2013.”

Mr Sims said some customers took their cars in for repairs up to seven times, with Ford allegedly often charging owners about $7000 for a replacement vehicle.

Ford Australia chief executive Graeme Whickman said the company rejected the ACCC allegations and would fight them in court. “We acknowledge that ­issues have arisen in certain vehicles fitted with the PowerShift transmission,” he said.

“As each of these issues has been identified, the Ford team has investigated and worked with customers to implement manufacturing and repair solutions.”

Mr Whickman said Ford provided refunds and replacements in line with Australian consumer law and had always worked transparently to provide the best outcomes for customers.

“We acknowledge that some customers had a poor experience when the clutch shudder issues on the PowerShift transmission first came to light and we are sorry for this,” he said, adding that any customer with concerns should contact their dealer or Ford Australia.

Carmakers have paid out large sums around the world to settle legal claims over safety worries. General Motors has reached settlements to pay more than $US2 billion relating to its ignition-switch defect. In 2012, Toyota agreed to pay about $US1.1bn to settle a class action over the unintended acceleration of its vehicles.

Japan’s Takata has filed for bankruptcy protection after its faulty airbags led to some deaths and the recall of 42 million vehicles in the US.

The ACCC has said it will launch a study into the car retailing industry to investigate concerns over compliance with con­sumer guarantees. It took action against Fiat Chrysler last year over consumer guarantee complaints.

Additional reporting: agencies