Ford Explorer Settlement: Not a Bad Deal
By Michelle Krebs November 29, 2007
SACRAMENTO, Calif. -- Fordâs settlement of class-action lawsuits filed in California related to Explorer rollovers doesnât sound like a bad deal for the automaker at all.
For starters, it marks the last of the outstanding lawsuits against Ford stemming from the Explorer rollovers.
And the settlement – excluding what must be astronomical legal fees – doesn’t sound that costly. It allows vehicle owners to apply for $500 vouchers to buy new Explorers or $300 vouchers to buy other Ford or Lincoln Mercury products. That’s less than some incentives Ford has offered.
Ford needs a boost in sales, which have been down by double digits in some months of this year compared to last. Edmunds.com forecasts Fordâs November sales to be reported next week will be flat compared with last November and down nearly 8 percent from October, pushing market share down to 14.7 percent.
The settlement reached Wednesday covers about a million people in four states â California, Connecticut, Illinois and Texas. The settlements apply to Explorers from model years 1991 through 2001. Consumers can apply for the vouchers through a Web site starting Monday if a Sacramento judge approves the settlement.
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What a load of crap. What a raw deal for the consumer. That is a small price for Ford to have to pay.
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