Ford Motor Co. has agreed to settle a class-action lawsuit over claims that it sold defective diesel engines in its 2003-07 Super Duty pickups and E-series vans.
The now discontinued diesel 6-liter V-8, manufactured by Ford's former diesel engine supplier, Navistar International, had myriad problems with the fuel system, turbochargers and other major components.
According to the settlement, any U.S. purchaser and lessee of any 2003-07 Ford vehicle equipped with a 6-liter Power Stroke diesel engine is covered if the vehicle's exhaust gas recirculation (EGR) cooler and EGR valve, oil cooler, fuel injectors, or turbocharger was repaired, replaced or adjusted prior to 135,000 miles or six years.
Each component is given a reimbursement limit. In addition, according to the settlement, if a class member paid a $100 deductible more than once for repairs under the five-year/100,000-mile engine warranty, Ford will reimburse $50 each for the second through fifth deductible paid, up to a limit of $200 for four deductible payments.
The settlement resolves dozens of class-action lawsuits against the company and entitles owners to be able to claim between $50 and $825 in reimbursement for post-warranty repairs to their engine and engine components.
Poor engine quality, high repair costs and sinking customer satisfaction ended the relationship between Ford and Navistar, which had built every Power Stroke engine used in Ford's F-Series since 1994. In 2010, Ford replaced the Navistar diesel with a new 6.7-liter diesel V-8 that the company designed in-house. That engine is built in a plant in Mexico.
Some 6-liter failures were so severe that Ford had to replace complete engines. Ford also ended up buying back hundreds of trucks that couldn't be easily repaired. The engine problems dramatically increased Ford warranty costs and led to litigation with Navistar.
According to court documents, Ford will pay roughly 50 percent of the full value of the claims made in the class action and was ordered to pay $150,000, in total, to the 16 named plaintiffs.
Navistar, which was dismissed from the litigation, had no comment, according to a company spokesman.
Ford said customers can visit www.dieselsettlement.com for more information. Those eligible have until Dec. 31 to download and submit claims to the settlement administrator.
Richard Truett contributed to this report.