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Ford Sued for $1 Bil by Software Supplier

Versata claims automaker stole trade secrets.

by on Jul.16, 2015

Ford is being sued for $1 billion by a supplier that claims the company used its trade secrets to produce a rival software program.

Ford Motor Co. is being sued by a former software supplier for $1 billion that claims the automaker stole trade secrets for product development software.

Versata Inc., a Texas-based software development company, claims in its suit that Ford used proprietary information from the supplier in programs it patented. The company filed the suit on May 7 in Texas.

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Ford is denying Versata’s claims and, in fact, filed an earlier lawsuit in Michigan to ensure that its program did not infringe on Versata’s intellectual property. Versata provides similar software to other automakers including General Motors, Nissan, Fiat Chrysler, Toyota, Hyundai, Kia, Volvo and Jaguar. (more…)

Ford Trims C-Max Mileage by 10%, Offers “Goodwill” Cash to Owners

EPA expected to tweak its fuel economy rating process.

by on Aug.15, 2013

Ford cut the mpg rating of the C-Max Hybrid while also giving up to $550 to owners as a "goodwill" gesture.

Ford Motor Co. will reduce the fuel economy rating of its popular C-Max Hybrid by about 10% to better reflect what often-frustrated buyers have been experiencing in the real world, and it will offer owners as much as $550 as a “goodwill payment” to cover higher-than-expected fuel costs.

The hybrid version of the C-Max has been the center of controversy since Ford started advertising a 47 mpg rating for the “people mover.” That has triggered significant criticism – and several lawsuits from those who claim the numbers don’t reflect real-world experience. But the C-Max Hybrid is by no means alone.

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The Environmental Protection Agency, which is charged with overseeing federal fuel economy regulations, is expected to announce revisions to its testing and labeling procedures to acknowledge the mileage gap many of the latest vehicles – especially those using hybrid and other advance powertrain technologies – suffer from.


Ford Accused of Covering up F-Series Fuel Tank Defects

Lawsuit claims maker advised dealers, ignored customers.

by on Mar.16, 2012

The suit alleges the lining of the F-Series fuel tank can flake off and cause engine stalling.

A lawsuit filed this week in federal court in New Jersey claims Ford Motor Co. hid problems with the fuel tanks in its big F-Series pickups that reportedly can lead to a loss of power or stalling.

The complaint, Coba et al v Ford Motor Co., seeks to be certified as a class action.  The automaker had no immediate comment and it is not clear if federal regulators are now looking into the issue as it could be considered a potential safety hazard.

The problem could be a significant one for Ford if the courts agree with the complaint.  The F-Series is not only the automaker’s best-selling product but has been the most popular product in the U.S. market for the last 30 consecutive years. (F-Series Tops the Sales Charts. Click Here for more.)

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According to the papers filed with the U.S. District Court, Ford was aware that the linings of the F-Series pickups and E-Series vans built between 1999 and 2008 could “separate and flake-off,” which could clog the fuel lines, leading to a loss of power or even stalling.


Ford Hammered By Investors Over $2 Bil Judgment

Ohio Court rules against maker in commercial truck class action suit.

by on Jun.13, 2011

Ford could be facing a $2 billion payout to its heavy truck dealers due to a verdict in a long-running lawsuit.

Ford Motor Co. is being hammered twice as the result of a judgment on a class action lawsuit filed by a group of commercial truck dealers.

An Ohio court has ruled that the automaker will have to pay $2 billion for allegedly failing to give all those dealers the same price concessions, over more than a decade, as required by their contract.  As many as 3,000 U.S. Ford dealers could stand to gain substantial reimbursements that include years of interest charges.

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In all, the verdict could cost the suburban Detroit maker as much as $2 billion, if the judgment stands – though Ford has vowed to appeal and believe it will be able to get the verdict set aside.  But nervous investors, who have already driven the stock down sharply since it hit a mid-winter peak, reacted with concern.  In the minutes before the market closed on Monday, Ford shares were off more than 2%, hovering barely above the $13 mark.