Consumer watchdog weighs into Ford Powershift row

PDATED: AUSTRALIA'S consumer watchdog will take Ford to court over claims the carmaker misled buyers over faulty gearboxes fitted to about 72,000 vehicles sold here.

• Watch Ford Australia president Graeme Whickman defend his company against the ACCC claims today
• Read the ACCC's claims against Ford Australia in our gallery

The Australian Competition and Consumer Commission (ACCC) said today it had launched proceedings against Ford Australia “alleging that it engaged in unconscionable and misleading or deceptive conduct, and made false or misleading representations in its response to customer complaints”.

Ford said it strongly refuted the ACCC’s allegations, and would challenging them.

The ACCC said the customer complaints it was investigating related to Ford Fiesta, Focus and EcoSport vehicles supplied in Australia between 2011 and 2016, and which featured the dry-clutch version of Ford’s PowerShift transmission (PST).

“The ACCC alleges that about half of the 70,000 vehicles sold had at least one repair relating to the PST,” it said.

“Customers made complaints to Ford and its dealers about their car’s excessive shuddering and jerking when accelerating, loss of gear selection and sudden loss of power and/or excessive noisiness from the PST.

“From 2011 to May 2015, Ford allegedly refused to provide a refund or replacement vehicle to consumers, even after vehicles had undergone multiple repairs that had not fixed the issue.

“In most cases, Ford only provided replacement vehicles in accordance with its ‘PowerShift Ownership Loyalty Program’, which required consumers to make a significant payment towards a replacement vehicle.”

Australian consumer laws mean Ford could face a penalty of up to $1.1 million per breach. The ACCC's court documents allege multiple breaches, meaning that if the court sided with the consumer watchdog, Ford's fines could run well into the tens of millions of dollars.

Ford is believed to have already settled with some owners affected by the Powershift grumbles. However, it is understood that many of the payments have fallen short of what the customers paid for the vehicles.

The company said it was aware of the problems customers were facing.

“We acknowledge that issues have arisen in certain vehicles fitted with the PowerShift transmission,” it said in a statement

“As each of these issues has been identified, the Ford team has investigated and worked with customers to implement manufacturing and repair solutions. We have always worked to provide the best possible customer outcomes, in a transparent manner.”

Asked if the ACCC court action had damaged Ford's reputation, Ford Australia president Graeme Whickman said his company had a "proud legacy" in this market.

"At the same time, we need to be honest," he said. "We're not here hiding behind a press statement. We need to front up ... to customers and say yes, they're in a safe vehicle and yes, we have fixes for any of the issues they are facing, and absolutely refute that we've acted in an unconscionable manner."

The ACCC's claims submitted to the Federal Court include a number of supporting stories from customers unhappy with their Powershift experience. All noticed the onset of transmissions shuddering and jerking when changing, which in most instances Ford said was the gearbox "operating normally or within specification".

Some also claim they had to pay an average of $7000 to join Ford's ownership loyalty program before they would be given a replacement vehicle - money they could not afford.

The case will have its first management hearing in the Federal Court on August 11.