Ford could pay $500M to Fiesta and Focus owners in a lawsuit: Report

Ford could pay $500M to Fiesta and Focus owners in a lawsuit: Report

It all depends on how many owners are willing to buy back their vehicle.

Transmission problems have been reported by more than a few owners of 2012-2016 Ford Focus or 2011-2016 Fiesta. A class-action lawsuit was filed in 2012 over the issue, alleging that Ford knew of a problem with the dual-clutch transmission in many Focus and Fiesta models. Ford settled the lawsuit for at least $30M, but a report by the Detroit Free Press indicates that the final cost could be half a billion .

A buyback program for Fiesta and Focus owners is the reason for this expense. Although the report does not mention a specific buyback price it does indicate that buybacks can be purchased between $15,000 and $22,000. This raises three questions. How many cars are affected by the transmission problem? What percentage of owners are looking for a buyback option? How much per vehicle will the buyback cost?

According to the report, 100,000 cars may have serious issues that warrant the buyback. The total amount of $450 million if 30 percent of the owners choose to buy back their cars at the $15,000 lower estimate would be $450 million. According to the Free Press, Ford has already paid $47 million for buybacks of 2,666 vehicles. This averages out at $17,629 per vehicle. The settlement for non-buyback payouts also guarantees $30 million. However, the Blue Oval has already been billed for $77 millions.

Although the lawsuit was settled in January the terms of settlement were approved today. Ford has been contacted for comment and we will update this article if we get a response.