More Bad News For Ford

Ford has agreed to settle lawsuits alleging that faulty ignition switches cause vehicles to stall without warning while in use. The problem is said to affect millions of vehicles manufactured between 1983 and 1995. Press and analyst figures vary from 5 to 22 million vehicles.

Some months ago, a Californian judge ordered a recall of up to 1.7 million vehicles in the state because of the problem. Ford denies any defect but has already settled a number of cases and the latest offer of settlement will mean replacing ignition switches on vehicles which have travelled less than 160,000 kilometres.

The proposal will be reviewed by the judge and, if approved, analysts estimate that the cost to Ford could be up to $1 bn; a figure which Ford says is “substantially overstated.” Among the models affected are the Escort, Explorer and Taurus..