ACCC action against Ford over alleged unconscionable and misleading conduct

[Express]

ACCC action against Ford over alleged unconscionable and misleading conduct




Lucy Cormack
26 July 2017



Car manufacturer Ford will face court over allegations it misled customers who had purchased faulty vehicles, and on-sold surrendered vehicles without disclosing their mechanical faults.

The Australian Competition and Consumer Commission launched proceedings against Ford Motor Company of Australia Limited on Wednesday, alleging the manufacturer had engaged in unconscionable and misleading or deceptive conduct, and made false or misleading representations in its response to customer complaints.


SEE LINK BELOW FOR ABC VIDEO


The complaints related to Ford's Focus, Fiesta and EcoSport vehicles, which experienced excessive shuddering and jerking when accelerating, loss of gear selection, sudden loss of power and excessive noisiness, due to a transmission system known as PowerShift Transmission.

All complaints related to models sold between 2011 and 2016. It is alleged that about half of the 70,000 vehicles sold had at least one repair relating to the transmission, while some vehicles were returned up to seven times.



It is alleged Ford refused to provide a refund or replacement to consumers, even after multiple repairs that had failed fix the issue, on models such as the Ford Focus


Court documents state that affected customers were told by Ford Australia "there were no problems with their vehicles and, or, that the issues were caused by the drivers of the vehicles or driving style."

It is alleged Ford refused to provide a refund or replacement to consumers, even after multiple repairs failed fix the issue.

Those customers who did receive a replacement vehicle only did so after they made a significant payment, under Ford's "PowerShift Ownership Loyalty Program."

By the end of July last year more than 800 customers had paid, on average, around $7,000 through the program, totalling more than $6.5 million.



The 2012 Ford EcoSport was affected by the PowerShift Transmission fault. Photo: Supplied


It is further alleged that the car maker proceeded to on-sell vehicles surrendered through the loyalty program to wholesalers and customers, without disclosing the systemic mechanical issues.

"The ACCC alleges that Ford's conduct towards customers who had complained of issues with their vehicles was unconscionable," said ACCC chairman Rod Sims.

"We think the allegations we are making here are both extremely serious and indicative of broader problems in the industry...how many times does a consumer have to take their car back before it is judged not fit for service?"

Ford ‎president and chief executive of Ford Motor Company Australia Graeme Whickman said the manufacturer "strongly" rejected the allegations and would challenge them.

"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.

"We will work with [the ACCC] wherever needed to help provide certainty about the application of Australian Consumer Law for our industry."

Ford said it had contacted affected customers to provide them with the latest specification clutch free of charge, adding that more than 12,000 vehicles had already been upgraded

Mr Sims said the watchdog was "alarmed" by the rate of non-compliance with the Australian Consumer Law in the new car industry.

"Cars are the second-most expensive purchase most consumers will ever make and if they fail to meet a consumer guarantee, people are automatically entitled to a remedy."

Mr Sims added that manufacturers still largely dealt with consumers on the basis of their warranty, despite the introduction of consumer guarantees in 2011.

"The allegations show that by mainly dealing with consumers through warranty, manufacturers can run into severe risk of breaching consumer law," he said.

"We are not surprised by Ford's press release. They have been taking this position all along, which I guess, in part, is why we are where we are."

The ACCC is seeking declarations, injunctions, pecuniary penalties, consumer redress orders, corrective advertising, and compliance program obligations.

Any affected customers are encouraged to call their dealer or Ford Australia directly on 133 673.


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http://www.smh.com.au/business/consu...26-gxiwwt.html


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[russellw]

... and the official response from Ford is below.

Ford Responds to ACCC Action on PowerShift Transmissions for Certain 2010-2016 Built Focus, EcoSport and Fiestas

Ford strongly refutes the allegations made by the ACCC and we will be challenging them

Ford provides refunds and replacements in accordance with the Australian Consumer Law

Ford already has an extensive customer care program including repairing vehicles, compensating customers, and depending on the circumstances, providing full refunds and providing replacement vehicles.

Ford has also been proactively reaching out to the most affected customers to provide them with the latest specification clutch free of charge. A total of over 12,000 customers’ vehicles have already been upgraded

If any customer has concerns about their vehicle we encourage them to call their dealer or Ford Australia directly on 13FORD.


Melbourne 26/07/2017: Ford Australia today is responding to an announcement by the Australian Consumer and Competition Commission (ACCC) that it has commenced civil proceedings against Ford Australia for conduct relating to certain vehicles with dry-clutch PowerShift automatic transmissions. The company rejects the ACCC’s allegations and will challenge them.

We acknowledge that issues have arisen in certain vehicles fitted with the PowerShift transmission. As each of these issues has been identified, the Ford team has investigated and worked with customers to implement manufacturing and repair solutions. We have always worked to provide the best possible customer outcomes, in a transparent manner.

“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,” Graeme Whickman, Ford ‎President & CEO Ford Motor Company, Australia said today.

“We’ve continued to improve our response times to customers and have been repairing vehicles, compensating customers, and depending on the circumstances, providing full refunds and providing replacement vehicles,” Mr Whickman added.

“Repairs are available for all PowerShift transmission issues and all new vehicles on sale today are built with the latest updates.”

If any customer has concerns about their vehicle we encourage them to call their dealer or Ford Australia directly on 13FORD.

“Whilst we strongly refute the ACCC allegations and will challenge them, we will work with them wherever needed to help provide certainty about the application of Australian Consumer Law for our industry,” Mr Whickman added.

“Our focus right now is on continuing to get the latest specification clutch to our customers so they can enjoy their vehicles as intended.”

The current model LZ Focus and vehicles equipped with manual transmissions or diesel engines are not affected.

[Adamz Ghia]

According to Ford the correct remedy for a faulty car that's needed 3 clutches in just under 3 years (just had a 4th installed making it 4 in 3 and a half years) is employee pricing on a new Ford and case closed. I hope the ACCC tears them a new one.

[jaydee]

Oh come on, "It's just your driving style, you will have to adapt your driving to the vehicle" so says the service manager.

[Adamz Ghia]

The 3rd clutch fitted was this new clutch that was supposed to fix all the issues. What a load of crap, it lasted 5 months before the shudders came back.

[dunga]

quote: all new vehicles on sale today are built with the latest updates.”
Yes they replaced the power**** with an auto I believe.

[Mercury Bullet]

I for one am pleased to see the ACCC stand up for consumers although this could bring a lot of hurt Fords way.

Manufacturers have been getting away with lemons forever in this country and it has to stop.

They all do that...yeah right.

[Joe5619]

They only have themselves to blame..

[Cav]

I recall the ABC's story about the Ford Capri lead to that car's demise.

I wonder what this saga will do to Ford.

Did the poor crash rating of the Mustang have any affect that car's sales?

[Shonky.]

Ford CEO should be shot with a ball of his own ****

Its finally all coming home to roost, he could at least show some remorse at what they've put buyers through

Deserve to burn in my opinion

[Shonky.]

not dissimilar to the United Airways CEO response to the poor treatment of a customer which is considered to be one of the poorest responses to a PR nightmare of all time

when you **** up, you need to politely hold your hat in your hand and say sorry, not push back with ridiculous counter arguments

everyone knows how Ford wanted to play it

you reap what you sow

[P6LTD351]

I back Ford up all the time....but in this case....I can't.

And these people saying that it's not like a normal auto and it's the way you're driving it.....BS!!!! For the average Joe, it's either an auto or a manual. Everything other than a manual is an AUTO and trying to twist words is utter BS. These cars should be able to be driven like any other auto....place in D and go. Ford should have cut their losses and refunded customers. It would have been cheaper for them in the long run. Might as well bring the Laser name back because the Focus name is crap because of this. Why are businesses so damn short sighted???? You have a systemic issue.....refund the money or replace the car with an alternative!!!

[XB GS 351 Coupe]

I think it's about time that car manufacturers are called to answer some questions.

When you take your car in and they say,'Hey that's normal they all do that' or my favourite, 'it's within spec'

[CyberWasp]

The best thing management could do, is go spend a week in a service center and get some front line action talking to customers face to face.
It is easy to make decisions from board rooms and meetings, but go and spend some time at the source of the problem and they will gain a new perspective.

[Smoke Pursuit]

I don't think so Mr Whickman. People have had to fight extremely hard to get their vehicles rectified or some sort of replacement, all of which have typically lost money or had to contribute to Fords goodwill replacement. Best thing you and Stephen Kruk can do is start taking customers complaints seriously and start taking ownership, instead of letting Ford call center minions reject customers complaints and treat them with contempt.

[FairmontGS]

Lots of people in this thread who sound like they should shop for another brand. Enjoy your Daewoos boys

[b0son]

It's not a fault if they all do that.... isn't that how it works?

We laugh at a post-Commo Holden, but without Ranger, would Ford be doing much better?

[stock1991]

Originally Posted by FairmontGS

Lots of people in this thread who sound like they should shop for another brand. Enjoy your Daewoos boys

[Smoke Pursuit]

Originally Posted by FairmontGS

Lots of people in this thread who sound like they should shop for another brand. Enjoy your Daewoos boys

You obviously have never had a faulty car...

[au2000]

Originally Posted by FairmontGS

Lots of people in this thread who sound like they should shop for another brand. Enjoy your Daewoos boys

And here in lies the problem, they are, that's why ford can't sell a focus or fiesta to save themselves ATM, and that's why ford's attitude to customer service is terrible,
When I showed the dealer the clear coat peeling off my fgx g6e rims 12 mths ago (car still under the 3 year warranty) I was told tough luck, go through ford customer service who then said that to fix the issue I could buy replacement rims.......
So I did,
From a wheel and tyre shop.
I feel for the owners fighting this, I wish them all the best and I hope that in the end they get suitable restitution and ford wears a massive kick in the *** for their behaviour.

[DJR]

Our eldest son had troubles with his 2013 Focus and we were told, like everyone else, that nothing was wrong. The night his car lost drive in the middle of an intersection and he was almost T-Boned by an oncoming vehicle was enough.

Ford replaced the transmission under warranty, though in the week they had the car in the shop, we didn't know whether or not they were coming to the party for the repair.

We've now bought the car off him and he drives my old 2011 SZ Territory TS Diesel. Shortly, we'll be offloading the Focus and, unfortunately for Ford, aren't heading back into their showroom. I'm a Ford loyalist, including splurging on an XR8 Sprint last year. But this left a horrible taste in our mouths.

[csv8]

Ford need a new PR team, asap...its going to take some time to win customers back..
Fairmont GS.. Daewoo hasn't been around for 10plus years. Since GM bought them out.
But people still think Daewoo is still around !!!

[amiers]

Just to put some balance in this conversation. I purchased a 2014 Focus auto for my daughter, knowing about the gearbox problem, I drove the car and found it to be fine. it had about a month worth of new car warranty left so I dropped it in to my local Ford dealer for a check over.

on pick up they said it had a problem with the auto. it was booked in for repair two days later, a loan car was given to her and the car returned within two days. the service staff were terrific and everything that was done was explained clearly to her. So maybe we were lucky with the dealer we went to. 12 months later and no drama at all with the car. So thanks to Q ford in Springwood.

[Spammy]

What was the Powershift Loyality Program and how did it work? Seems odd that anyone would hand over another $7 grand to Ford to show loyality to car that doesn't work??

[kazawaki]

Typical Ford response any problems are not there fault,i have a noisy power steering pump and it is going in to ford next week.I was expecting there normal responce so in advance i have had it checked by a well known expert and the problem is noted on the invoice as well as another noisy diff.If they contest the issue i will simply point them towards the EXPERT that has unearthed the problem.I trust ford as much as i would trust my dog not to eat a steak left with in reach.

[GASWAGON]

Wtf....How can they expect customers to hand over 7k when they know the product has major problems?

This is just as bad as all the DPF problems going around and now also the faulty Airbags debacle.

And I hope all these manufacturers are giving these customers loan cars so they can get to work etc while the repairs are being done?

What a freakin nightmare!

[happyrock]

put yourself in the shoes of a car dealer!

[FalconXV]

sucked in.. that's what you get for killing the Falcon.

[ronwest]

We replaced my wife's 2013 Focus (20,000 kms) with a 2016 Kuga.

No significant problems with shudder but we bailed before the car became worthless.

Actually, a good deal from Ford on the Kuga so happy enough...

Know a woman who had her Focus back to Ford 7 (yes seven) times for gearbox issues.

Two replacements and heading for a third when it conked out on the freeway.

Solicitor involved and she got a new Escape for $2300 and free services for 3 years.

She's happy with the Escape but will never buy another Ford.

[Terror_Tree]

From what I have seen Ford have brought this on themselves. Are the ACCC going to have the balls to go after other car makers as well? VW (group), Chrysler (Jeep) and Holden all have fobbed off customers with problems and the ACCC has done bugger all.