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| | Heated Ignition Switches Leave Ford's Corporate Image Stranded By Robert Warne - August 16, 2001In what many are calling the right thing to do and a victory for consumers, Ford Motor Co. agreed to settle a lawsuit over an alleged defect in its ignition devices. Rather than prolong the case and hold out for a total recall of 1983-95 vehicles, Jeff Fazio, lead attorney against Ford, opted for the settlement—which, if approved, could cover 5 million vehicles nationwide within a short period of time.
The agreement would void a recall order by Alameda County Superior Court Judge Michael E. Ballachey, issued four months ago. Ballachey ruled in a California statewide class-action suit that Ford concealed shabby parts from government inspectors. His decision was expected to affect nearly 2 million vehicles.
The disputed ignition device is allegedly rendered ineffective and faulty, causing the engine to stall, as a result of it being mounted too close to the engine block, exposing it to extreme temperatures. Despite settling hundreds of wrongful death, injury and other suits resulting from the stalling of its vehicles, Ford still denies the devices are faulty.
Under the settlement, Ford agrees to replace ignition switches in all its vehicles that have stalled and have no more than 100,000 miles. Owners may have their vehicles fixed or be reimbursed for repairs as early as next year.
Industry onlookers view this as an important effort by Ford to deal with the successive problems that have plagued its corporate image. First, Ford was at the center of the recall of 6.5 million Firestone tires, in which the majority was on Explorers. Ford has also been tarnished by accusation that the Explorer, its best-selling sport utility vehicle, is inherently unsafe.
The class-action suit turned up documents Ford had kept concealed from National Highway Traffic Safety Administration officials while hundreds of complaints about the stalling problem were being investigated. One piece of evidence uncovered during the trial was that an engineer had warned Ford that high temperatures would cause the ignition device to fail. From its own internal studies, Ford confirmed the problem, which would have only cost approximately $4 to mount the ignition device in a cooler place.
Revelations such as these prompted Ballachey to exclaim that Ford was living in an "Alice in Wonderland" dreamland for denying that the ignition switches were defective. |