Ford agrees to new settlement for Bronco II owners

02/03/97

Reuters reports that Ford Motor has reached a new settlement on the class action lawsuit brought against it by owners of the company's Bronco II sport utility vehicle. The lawsuit claimed the Bronco II (which Ford made between 1983 and 1990) is prone to rolling over, and asked the court to make Ford refund the purchase price of the vehicle to owners, pay for lost value, and recall or retrofit all Bronco IIs.

The new settlement in the case replaces a settlement that U.S. District Judge Morey Sear threw out two years ago in New Orleans.

Judge Sear rejected the first settlement because it gave Bronco II owners "effectively zero" while awarding their lawyers $4 million. The Ralph Nader group Public Citizen filed formal objections to the original settlement before the Judge ruled against it in 1995. Judge Sear will rule on the new settlement, also.

260 people have died in Bronco II roll-over crashes, and Sear disclosed in 1995 that Ford had paid $113 million to settle injury and wrongful death suits. Although Ford stopped making the vehicle in 1990, it has consistently fought legal allegations that say the compact Bronco II is inherently prone to roll over because of its short wheelbase and high center of gravity. The company blames roll-overs on poor driving or unsafe modifications owners have made to the vehicles.

The settlement submitted to Sear on Tuesday won't affect personal injury suits against the auto maker, but will resolve class action allegations that design defects reduced the resale values for the Bronco II.

If the Judge approves the settlement, Ford will give owners $100 toward the cost of replacing worn suspension components and pay up to $200 to owners who make certain modifications on the vehicles. The company will also send the estimated 658,000 Bronco II owners new warning labels, owners manuals, and videos that show situations in which sport utility vehicles can roll over, such as sharp turns or abrupt maneuvers.

Ford's spokesperson Jennifer Flake said, "the settlement agreement reiterates a message that we've communicated for years, that the Bronco II is a safe vehicle when driven with common sense and accordance with safe driving practices." Flake would not say how much the settlement will cost Ford, but she did say the company has not agreed to any specified level of attorneys fees in the deal. Ford has agreed to let the court set the fees as it deems appropriate.

Paul Dever -- The Auto Channel