CHICAGO, Feb. 29, 2000 -- The consumer law firm repesenting owners of Ford vehicles today issued the following response to Ford's press release regarding its warranty extension.
On December 9, 1999, in Chicago,
Illinois, a class action lawsuit was filed against Ford Motor
Company by Horwitz, Horwitz and Associates, Ltd. on behalf of
plaintiff Lance Lhotka. Mr. Lhotka owns a 1995 Ford Windstar
which experienced premature head gasket failure.
In June of 1998, Ford issued extended warranty 98M01, which
extended coverage on affected vehicles to 5 years or 60,000
miles. However, Ford has failed to honor the explicit terms
of 98M01, even though the 1995 Windstar and other Ford vehicles
are infamous for repeated instances of premature head gasket
failure.
The suit alleges that Ford's failure to assume full responsibility for the defective condition of the 3.8 liter engine and the costly repairs necessary to the vehicles of Mr. Lhotka and thousands of other Ford customers amounts to Breach of Warranty and Breach of Contract. The suit seeks compensatory damages, punitive damages and attorneys' fees.
On February 25, 2000, in response to the class action lawsuit and growing consumer pressures, Ford issued a press release which indicates that Ford will extend the warranty on vehicles covered by the lawsuit to 7 years or 100,000 miles. The release also indicates that Ford will either reimburse consumers for head gasket repairs already performed or offer a $4,000 coupon on the purchase of a new Ford, Lincoln or Mercury vehicle.
Ford's press release leaves unresolved several issues of great importance to consumers:
Ford still has not acknowledged that the 3.8 liter engine is defective.
Ford has not stated whether it will reimburse consumers for the cost total engine replacement caused by head gasket failure.
Ford has not stated what criteria will be applied to consumers seeking reimbursement for repairs.
Ford has not stated whether it will provide reimbursement for costs associated with head gasket repair, such as towing bills and car rental bills.
Even at this late date and after a year of frustration for consumers prior to the filing of the class action, Ford apparently maintains that the class action lawsuit had nothing to do with its newly announced program.
The attorneys at Horwitz & Associates are presently in discussions with Ford to determine the extent of Ford's newly announced program and its impact upon consumers. The attorneys intend to seek the Court's assistance in obtaining Ford's cooperation in safeguarding the interests of consumers victimized by the 3.8 liter engine.
-- Horwitz, Horwitz, and Associates, Ltd. Clifford Horwitz, Richard Doherty
