This follows after 160 complaints in relation to the Ford Kuga 1.6L Eco-boost vehicles that were catching fire, either whilst being driven or parked, between 2016 and 2017. 

This settlement agreement with the Ford Motor Company comes following years of investigations by the National Consumer Commission. 

Ford acknowledged that it contravened Section 112 of the Consumer Protection Act. The company has already compensated the owners of the Kuga vehicles that burned, and further compensation has been offered.

NCC Acting Commissioner, Thezi Mabuza, said “I can confirm that the Commission and FMCSA have entered into a settlement agreement which will be filed in the Tribunal and made an order of the Tribunal.”

Consumers have been offered three compensation options:

Option one: A payment of R50 000 each for those consumers who were owners of or in lawful possession of a Kuga FMCSA vehicle which combusted, and as a result suffered a loss as contemplated by Section 61(1) read with Section 61(5) of the CPA. The payment of the said sum will, should the consumer elect to accept it, be a full and final settlement of all claims that the consumer may have against FMCSA as a result of the damaged or recalled Kuga vehicles.

Option two: Is if a consumer whose Ford Kuga burned, believes that he/she is entitled to compensation in excess of R50 000, then the consumer may submit a claim against FMCSA in terms of Section 61 of the CPA. The Commission understands that arguing damages claims in court can be costly, hence it was agreed that Adv. Terry Motau would provide alternate dispute resolution services as contemplated by Section 70(1)(c) of the CPA;

Option three: A consumer may choose to reject option 1 and 2 and proceed to prove damages in court.

OFM News/Marvin Ntsane