Ford to Pay $51.5 Million to Settle Allegations That Consumers Were Misled About the Safe Use of Its Sport Utility Vehicles

Ford Motor Company will pay $51.5 million under an agreement settling allegations that the corporation misled consumers about the safe use of its sport utility vehicles (SUVs).

Without admitting wrongdoing, Ford entered the agreement with all 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands. The agreement does not preclude individuals from asserting private legal claims against Ford.

The District of Columbia will receive $300,000 under the agreement and will help oversee development of the $30 million SUV safety information campaign. Ford already has spent approximately $2 billion to replace tires in the District of Columbia and the other 52 jurisdictions entering the agreement.

The states alleged that Ford failed to disclose a known safety risk concerning tire failures with certain Firestone ATX and Wilderness AT tires which came equipped on some Ford SUVs. The states also alleged that Ford's advertising misled consumers as to the safe use of Ford SUVs, and that certain aftermarket tires sold through Ford's "Around the Wheel" program were the same tires as the tires that came equipped on Ford SUVs, when that was not true.

The agreement comes a year after the states entered into a $51.5 million nationwide settlement with Bridgestone/Firestone Inc. related to the advertising and sale of tires that had high rates of tread separations. Bridgestone/Firestone manufactured the tires specifically for use as original equipment on Ford Explorers and Mercury Mountaineers.

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