Ford Motor Co. has agreed to settle class-action lawsuits affecting 1 million consumers in four states who claimed that Ford Explorer sport utility vehicles were prone to rollover accidents.
The agreement covers the remaining lawsuits that were filed following the Firestone tire recalls which damaged Ford's image.
Owners of 1991 through 2001 Ford Explorers in California, Connecticut, Illinois and Texas will now be able to apply for $500 vouchers to buy new Explorers or $300 vouchers to buy other Ford, Mercury or Lincoln products, according to reports about the agreement.
As part of the settlement, Ford will be required to distribute information about the rollover dangers of SUVs as well as limit safety claims for the vehicles in advertising.
The settle was filed in Sacrament County Superior Court in Sacramento, California and is awaiting a judges approval. Ford will not disclose how much the company paid to settle the claims nor would Ford discuss terms of the deal other than to confirmed that an agreement was reached.
"We believe the agreement is fair and reasonable and is in the best interest of our customers," said a Ford spokeswoman.
The attorney would brought the lawsuit said that consumers will be able to apply for the Ford vouchers through a Web site as soon as Monday if the settlement is approved.
Final approval of the agreement will be delayed until April so that people covered by the settlement have time to apply for the vouchers, according to Kevin Roddy, a co-counsel for the plaintiffs.
Once the preliminary settlement is approved, Ford will publish a toll-free number and Web site for consumers as well as mail notices to Explorer owners.
The lawsuits were filed in the following a federal investigation in 2000 after more than 250 people were killed and hundreds more injured in accidents involving tread separation on tires produced by Bridgestone/Firestone Inc. Most of those accidents involved Ford Explorers.
Ford and Bridgestone/Firestone each blamed one another for the accidents. Ford accused the tire manufacturer of producing an inferior tire. The tire maker charged that the design of the Explorer was the cause of the rollovers.
In 2002, the National Highway Traffic Safety Administration declared that the Explorer was no more rollover-prone than other SUVs.
