Ford to pay customers R50 000 each in compensation after Kuga fires

Ford Motor Company South Africa and the National Consumer Tribunal have confirmed that they reached a settlement on the Kuga SUV fires, with Ford being ordered to pay R50 000 each in compensation to affected customers.

In terms of the order, Ford will pay compensation if the consumer's vehicle was distributed between 2014 and 2017 and if it was one of the 56 Ford Kuga models that caught fire, and where the fire originated in the engine compartment and damaged the vehicle.

The commission previously conducted an investigation and found a failure in the cooling system of the Ford Kuga 1.6 EcoBoost model – which was manufactured in Spain specifically for South Africa – was the cause of the fires, News24 reported.

According to a statement issued by the National Consumer Commission on Monday, if the vehicle suffered an engine compartment fire and the consumer has not yet been compensated for movable goods that were damaged during the incident, they have the option to either institute a claim in terms of the Consumer Protection Act, or to approach the courts at their own expense.

Customers choosing the first option will receive their settlement within three months, the Commission said.

Acting Commissioner Thezi Mabuza said the settlement brought the matter to a close and that the process was not trying to deprive consumers of available remedies in the law.

In December 2019, it was widely reported that the National Consumer Commission fined Ford some R35 million for the controversial Kuga fires, which saw several Ford Kuga vehicles going up in flames.

The defects first started making news headlines when Reshall Jimmy, whose death has been the subject of a High Court inquest, was found burnt to death in his car, a Ford Kuga.

* Compiled by Marelise van der Merwe

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
15.22
(-0.07)
ZAR/GBP
20.67
(-0.12)
ZAR/EUR
18.37
(-0.09)
ZAR/AUD
11.72
(-0.09)
ZAR/JPY
0.15
(-0.87)
Gold
1827.50
(+0.01)
Silver
24.75
(+0.10)
Platinum
1070.99
(+0.29)
Brent Crude
54.89
(-2.34)
Palladium
2377.00
(+0.59)
All Share
63549.75
(-0.52)
Top 40
58446.35
(-0.49)
Financial 15
11916.89
(+0.01)
Industrial 25
83811.01
(+0.08)
Resource 10
63855.25
(-1.46)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 646 votes
No, I did not.
51% - 1606 votes
My landlord refused
28% - 868 votes
Vote