Judge: Ford To Pay TFI Costs

SAN FRANCISCO--California drivers who dipped into their own pockets to pay for replacing faulty Ford thick film ignition (TFI) modules are to be reimbursed by the automaker, according to a ruling by Alameda County Superior Court Justice Michael Ballachey. Last year Ballachey ordered Ford to recall up to two million cars and trucks over the bad TFIs, and now Ford is to pay millions to consumers who replaced the part on their own.

He ordered Ford to pay drivers the amount it would have cost to fix the TFIs under its own warranty or during a recall. It is estimated that it will cost about $150 for some 750,000 California vehicles--adding up to some $112.5 million.

Ford denies that the TFIs are faulty and has fought to no avail to have Ballachey removed from the case, which involves allegations that Ford placed the TFI modules too close to the engine--causing overheating, premature part failure and subsequent engine stalling.

The recall--the first ever imposed by a judge--includes almost every Ford model sold from 1984-87 as well as selected vehicles made through 1995 and a few from 1983.

There are more than 22 million vehicles nationwide equipped with the suspect TFIs, but this order applies only to the Golden State. Ford faces similar class action lawsuits in Alabama, Maryland, Illinois, Tennessee and Washington, however these cases are on hold until the California case is settled. There are about 3.5 million current and former California Ford owners represented in the class action.

Currently the case is before a court-appointed referee as lawyers discusss implementing the recall order. Later comes the punitive damages phase of the trial, which could hit Ford with penalties topping a billion dollars.