Ford to pay $10 million due to transmission issues

KUALA LUMPUR: In a recent report, the Sydney Morning Herald stated that the Australian government has ordered Ford to pay (AUD) $10 million (RM 29 million) in fines. The American carmaker is said to have a bad reputation for their after-sales services in a number of markets, but lately, it’s being reported that the situation might be even worse in Australia.

The penalty announced for Ford by the Australian Consumer Law is the highest that the government has issued to date. The decision to order this penalty was declared after Ford admitted to mishandling customer complaints regarding Ford’s Fiesta, Focus and EcoSport units being fitted with the PowerShift transmission.

Rod Sims, the chairman of the Australian Competition and Consumer Commission (ACCC) said that Ford was aware of the symptoms that were being experienced by customers and yet demanded that the customers demonstrate those issues on the spot before accepting any repair jobs. Sims added, “In most cases, Ford refused to provide a refund or no-cost replacement vehicle to consumers, even after multiple repairs the issues were not resolved.”

Ford, between May 1, 2015 and February 29, 2016, had told customers that the problems they were experiencing (including clutch shudder, excessive transmission noise, and unusual shuddering and jerking during acceleration) were caused due to their varied driving styles and had nothing to do with the quality of the parts used by the company.

Now, Ford Australia has issued a public apology over this matter. Graeme Whickman, its president, and chief executive has pointed out various flaws in the company’s then-active loyalty program. He also mentioned that the customers were paying extra “to buy new vehicles although they may have been eligible for a refund or no-cost replacement vehicle.”

On asking Ford Philippines about this matter, they said, “The settlement reached with the ACCC was specifically related to our company’s processes in Australia and local applicable law.”

Ford is one of the world’s leading automobile company from whom its customers expected loyalty and assistance. The company earlier declined to assist its costumers but now, after the Australian Consumer Law has ordered a penalty of $10 million, the American carmaker is publicly accepting its faults and asking for an apology.