The National Consumer Commission has fined the Ford Motor Company R35 million for the Kuga SUV fires.
During was briefing the media in Pretoria, Acting commissioner Thezi Mabuza said Ford and the commission entered into a settlement agreement which will be made an order of the Tribunal.
“FMCSA (Ford SA) acknowledges that it is liable for harm in terms of Section 61 (1) (b) of the Consumer Protection Act. Whilst FMCSA has already compensated the owners or drivers of the Kuga vehicles that burned. FMCSA is further committed to consider any outstanding claims that may not been resolved,” said Mabuza.
Ford customers will now have three options if they wish to settle.
Option one will see Ford offering to pay a sum of R50 000 to each of the those consumers who were owners of Kugas.
The second option allows consumers who believe they entitled to compensation in excess of R50 000 to submit a claim against Ford.
The last option gives consumer the choice to prove damages in court.
The commission said although Ford was not found to have been negligent, the investigations reveals that the vehicle manufacturer engaged in prohibited conduct by distributing vehicles that failed or could have failed as a result of a cooling system failure.
The failure of the cooling system rendered the vehicles unsuitable.
Ford has issued a recall in 2017, which affected about 7,000 vehicles.