Sacramento, Calif. – Ford Motor Co. was accused of hiding safety defects in its Explorer sport utility vehicle as a nonjury trial opened over claims that the company owes customers as much as $2 billion for reduced resale values.
The company advertised the vehicle as safe while concealing defects that led to accidents and deaths, lawyers for Californians who bought or leased Explorers from 1990 to 2000 told a judge Tuesday in Sacramento, Calif. Lawyers said more than 400,000 customers are part of the class-action suit against Ford, based in Dearborn, Mich., the second- largest U.S. automaker.
“It represented through brand-image advertising and marketing that Ford Explorers were safe, free of defect and could ‘Go anywhere, do anything,”‘ attorney Kevin Roddy said, quoting a Ford ad.
If Ford loses, it may have to disgorge as much as $2.13 billion in profit from Explorer sales in California and restitution ranging from $1,100 to $1,300 for as many as 440,000 consumers, Roddy said by e-mail. Similar class-action suits are pending in other states.
Ford denies the claims, saying the suit was driven by lawyers seeking a settlement.
