Payment of compensation to Ford Kuga consumers finalised
In terms of the settlement agreement entered into between the National Consumer Commission (NCC) and Ford Motor Company South Africa (Ford), which was made an order by the National Consumer Tribunal (NCT) in March this year, Ford agreed to pay each consumer R50 000.00 as compensation if their vehicle were distributed during the period 2014 to 2017 and that vehicle was one of the 56 Ford Kuga vehicles that caught fire (and where the fire originated in the engine compartment and damaged the vehicle).
As per the order; consumers had two options:
Option 1: To submit a claim for the payment of the R50 000 (with or without a claim for loss of any movables) against Ford in terms of Section 61 of the CPA. Advocate Terry Motau SC was appointed to provide alternative dispute resolution services; or
Option 2: To choose to proceed to prove damages in court at consumer’s own expense.
A total of 76 affected consumers were engaged during the mediation period and 53 claims were resolved as follows:
47 consumers elected option one, and a total of R2 509 179 was paid which includes additional compensation for loss of movables;
Three consumers elected option two and may take their cases further through assistance of their attorneys;
Three more consumers’ claims were rejected as they could not prove that their loss fell within the parameters of the settlement agreement.
Acting Commissioner at the NCC, Ms Thezi Mabuza, extends her appreciation to the affected consumers for their cooperation and their patience during this process. She also extends her thanks to the Ford representatives and to the mediator, Adv Motau SC, for his professionalism in painstakingly going through each matter and providing guidance as to the resolve.
Media enquiries:
Phetho Ntaba
Cell: 082 809 2031
Tell: 012 428 7762
E-mail: P.Ntaba@thencc.org.za
