A major class action lawsuit against Ford Motor Co., claiming that the auto maker lied to consumers about the safety of its Ford Explorer sport utility vehicle models, threatens to send the struggling corporation over the edge, according to an article in The News & Observer. The suit, set for trial next month, is being brought on behalf of about 414,000 Explorer buyers in California who say Ford officials engaged in deceptive advertising by marketing Ford as a safe vehicle when they knew that it was more susceptible to roof crush and rollovers.
Ford’s trial team claims that this lawsuit threatens the $2 billion Ford earned in the 1990s from Explorers it built and sold in California and puts the automaker on the brink of complete collapse. Plaintiffs say Ford should be penalized irrespective of the financial impact because lives have been lost and major injuries have resulted because of “Ford’s deception.”
Personal injury attorneys and experts alike agree that the Explorer is one of the most dangerous vehicles ever produced in the country. Research has consistently shown that these SUVs have a tendency to flip over even when speeds are not remarkably high. Ford decided to continue with its faulty design because the company’s executives knew that it was simply more profitable to do so. To make matters worse, the company produced a marketing campaign to sell the Explorer as a safe and reliable vehicle for daily use. The class action lawsuit alleges further stating that Ford’s deception cost California’s car buyers about $500 million when their vehicles’ values plummeted once the defects became more widely known.
According to experts who were consulted for this lawsuit, the value of each of these 414,569 SUVs dropped from $1,000 to $1,300 beyond normal depreciation. The lawsuit does not seek specific damages. According to the News & Observer article, the judge has broad discretion to order Ford to pay, if he finds that the auto maker did in fact violate state consumer protection laws. This lawsuit is the first of its kind to go to trial and is being closely watched, the article states.
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