Update

GEORGE MOTORING NEWS - Following the death of Reshall Jimmy, a man from Johannesburg on holiday in Wilderness, who was burnt beyond recognition in his Ford Kuga in December 2015 and the recall of more than 4 500 Kuga vehicles, Ford has been slapped with a R35-million fine.

During a media briefing in Pretoria on Thursday 28 November it was announced that the National Consumer Commission (NCC) entered into a settlement agreement with the Ford Motor Company of Southern Africa (FMCSA). This comes after Ford acknowledged that it contravened the Consumer Protection Act (CPA).

Speaking at the media briefing, acting NCC commissioner Thezi Mabuza said Ford agreed to pay the fine.

A total of 4 556 Kuga 1.6 EcoBoosts were recalled in January 2017 after pictures and videos of burning vehicles went viral online. The fires were blamed on faulty cooling systems.

Reshall's sister, Renisha Jimmy, told the George Herald that the outcome is a bitter-sweet victory. "It has been a long hard journey for myself and most victims. I think those affected want closure to this chapter and hope that this brings it to them," she said.

Reshall Jimmy's Ford in which he burnt to death on Friday 4 December 2015.

In August Advocate Gerrie Nel, who represented the Jimmy family during the inquest, announced that he would be withdrawing from the case. "Our intention has always been to dispel the unfounded rumours and we are now convinced that the evidence led thus far excludes any indication linking the death of the deceased to any criminality, suicide or that he was murdered," Nel said at the time.

After the NPA initially declined to prosecute, Jimmy's sister, Renisha, kept demanding answers from Ford and the police.

The commission investigated the conduct of FMCSA after receiving 160 complaints from consumers who alleged that their consumer rights were infringed upon by the company.

"Our investigation into these allegations confirmed that Ford had engaged in prohibited conduct by distributing Ford Kuga vehicles that failed / could have failed as a result of a cooling system failure. This meant that the failure of the cooling system rendered the vehicles not suitable for the purpose for which they were generally intended and this resulted in the vehicles being unsafe at the time of the fires. 

"We will communicate with the individual consumers who filed their complaints with the Commission to determine the route they elect and to provide any guidance should they so require on the claims process," said Mabuza.

The terms agreed upon

1. Ford's acknowledgement that it is liable for harm in terms of Section 61(1)(b) of the CPA.
2. Whilst Ford has already compensated the owners / drivers of Kuga vehicles that burned, further compensation has been offered.
3. Consumers have been offered three compensation options:

• Option one: A payment of R50 000 (Fifty Thousand Rand) each for those consumers who were owners of or in lawful possession of a Kuga FMCSA vehicle which combusted and as a result suffered a loss as contemplated by Section 61(1) read with Section 61(5) of the CPA. The payment of the said sum will, should the consumer elect to accept it, be in full and final settlement of all claims that the consumer may have against FMCSA as a result of the damaged or recalled Kuga vehicles.

• Option two is if a consumer whose Ford Kuga burned, believes that he/she is entitled to compensation in excess of R50 000. Then the consumer may submit a claim against FMCSA in terms of Section 61 of the CPA. The Commission understands that arguing damages claims in court can be costly, hence it was agreed that Adv Terry Motau SC would provide alternate dispute resolution services as contemplated by Section 70(1)(c) of the CPA;

• Option 3: A consumer may choose to reject option 1 and 2 and proceed to prove damages in court.

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