The Ford Motor Co. has settled a lawsuit against owners of recalled Explorers because of exhaust fumes. It was a well-publicized defect that the company has attempted to address in newer models. However, the problem remains in older models. This article will cover the settlement and response from Ford. It will also discuss the class-action lawsuit against Ford. This article provides an overview of the Explorer Exhaust Leaks lawsuit.
Ford Motor Co.
Ford Motor Company is an American multinational automobile manufacturer headquartered in Dearborn, Michigan. It was founded by Henry Ford on June 16, 1903. The company produces cars and trucks under the Ford brand and luxury cars under the Lincoln luxury brand. Today, Ford Motor Company employs more than 260,000 people worldwide. There are several different brands and models available, including the new Ford Fusion and the Lincoln Town Car. Read on to learn more about each of these brands and their benefits and features.
For its Q2 2021 results, Ford reports earnings under three segments: Mobility, Automotive, and Commercial. To measure profitability, Ford measures adjusted EBIT, which is revenue-less expenses. Ford excludes tax and interest from this metric. Ford also reports corporate governance expenses, interest income, and investment gains under the fourth segment, called Corporate Other. The Automotive segment is responsible for more than half of Ford’s revenue. The Commercial and Industrial segments generate the remaining 48% of the company’s earnings.
The Ford Motor Company has agreed to settle a class-action lawsuit over Explorer exhaust leaks, which were a leading cause of deaths and injuries. In 2016, Ford agreed to pay up to $500 in customer compensation in exchange for making repairs or replacing the faulty exhaust system. The settlement was finalized in June but has not yet taken effect because of an appeals process. But it is a promising sign for Explorer owners.
Thousands of Ford Explorer owners filed a class-action lawsuit over the exhaust smell, alleging that the manufacturer concealed and failed to fix the problem. The lead plaintiffs alleged that Ford had sold defective 2016 and 2017 Explorers. While Ford denied all allegations, the settlement does allow plaintiffs to claim up to $125 in compensation if the manufacturer failed to properly install or repair a modified exhaust system. However, if the settlement isn’t successful, the settlement will not include any compensation for repairs made to the vehicle.
Ford Motor Co.’s settlement
The Ford Motor Co. has agreed to settle a lawsuit involving exhaust leaks in Explorers. This settlement covers up to one million Ford Explorer owners nationwide. The settlement includes free repairs if the vehicles are still under warranty, as well as different reimbursement amounts for vehicles whose warranties have expired. The settlement also includes a $400 reimbursement for costs associated with replacing a modified exhaust system. The lawsuit was filed in the Eastern District of Michigan.
According to the settlement, the company will pay up to $3.5 million in attorney’s fees and up to $10,000 for each lead plaintiff. Similar lawsuits involving 2011-2015 Explorers were settled in 2017. The Miller Law Firm PC and Kessler Topaz Meltzer & Check LLP were appointed class counsel. DLA Piper and Dykema Gossett PLLC are representing Ford.
Ford’s response to a lawsuit
While Ford has acknowledged that its vehicles are not without defects, its response to the plaintiff’s complaint about exhaust leaks was less than satisfactory. The company’s lawyers said that the lawsuit only alleged a design defect and that they needed to show that there was a material flaw in the exhaust system. They also claimed that they had only two weeks to file their answer. The lawsuit is on hold because the owner filed an objection to the settlement.
In the case of a safety defect, Ford’s response to the lawsuit focused on model years 2012 to 2017. While more than a dozen drivers of the 2018 Explorer models complained of exhaust fumes seeping into the cabin, Ford said it is monitoring customer complaints and has ordered free repairs for all affected vehicles. The company also recommends that customers contact their dealers to have their vehicles inspected. Despite the lack of legal response, Ford is still offering free repairs to its customers.
Ford’s response to a class-action lawsuit
After receiving complaints about exhaust leaks in their Ford Explorers, the manufacturer sent a technical service bulletin to dealerships. Ford representatives also offered to help customers who were concerned about the amount of carbon monoxide or exhaust fumes emitted. Ford representatives told owners to expect calls from them and said that they would be directed directly to the company. They also denied that the exhaust leaks were the fault of the Explorer itself. In addition, Ford officials argued that the Explorers are safe to drive and offered free services to fix the issue. In response, Ford argued that plaintiffs had failed to state their claims.
The Center for Auto Safety urged Ford to recall the Explorers and point to over 1,300 documented cases of the problem. Meanwhile, the NHSTA reported that it had received more than 2,000 complaints of exhaust leaks. In the complaints, victims have mentioned the exhaust smell and symptoms like burning eyes, nausea, drowsiness, and headaches. Although Ford has defended its vehicles and issued technical service bulletins, the company hasn’t recalled any of its models.
Ford’s response to New York General Business Law 349 claim
The plaintiffs filed suit against Geico on 4/21/2011, and Ford responded on 10/31/2011 by moving to dismiss under NY GBL Sections 350 and 349. The plaintiffs argue that Geico’s response to the claim violates the filed-rate doctrine and misinterprets the terms of the New York General Business Law 349 and 350 claims. We find these claims to be without merit.
A plaintiff alleging a violation of GBL SS 349 must establish three elements to succeed. First, the challenged act or practice must have been consumer-oriented, misleading materially, and resulted in injury to the plaintiff. The deceptive act or practice must also be likely to mislead a reasonable consumer. The courts consider the question of deceptiveness in the context of the consumer-product relationship.