DETROIT — Ford Motor Co. has agreed to an updated settlement affecting nearly 2 million customers in a years-old class-action lawsuit over faulty Focus and Fiesta transmissions.
The automaker has agreed to a minimum $30 million in cash reimbursement and has simplified the compensation and vehicle-buyback process, according to a filing with the U.S. District Court for the Central District of California. Ford has spent more than $47 million buying back vehicles from thousands of customers.
The amount each customer would receive depends on how many claims are submitted. The new deal includes $20 payments to customers who say a dealership refused to repair their car's transmission when they reported issues with it.
The automaker in 2017 initially proposed a settlement that, in part, would have awarded $35 million in cash reimbursement, but it was challenged on the grounds that not enough owners would be compensated.
The proposed settlement is up for final approval Feb. 28 by a district judge.