The Federal Court of Australia has found that certain popular model Ford vehicles are defective.

Between 2011 and mid-2016, Ford sold approximately 70,000 Focus, Fiesta and Ecosport vehicles fitted with a PowerShift dual-clutch transmission in Australia.

The class action is for the benefit of any person who bought or leased (or otherwise acquired an interest in) any of the Ford models described below at any stage over the period 1 January 2011 to 20 December 2024.

On 29 June 2021, Justice Perram delivered his decision in the initial trial of the class action. The Court found that the Affected Vehicles as originally supplied were not of “acceptable quality” within the meaning of section 54(1) of the Australian Consumer Law, with some vehicles containing more defects than others. The Court ordered Ford to pay Ms Capic damages in respect of her 2012 Ford Focus Sport. A copy of the judgment is available on the Federal Court’s website linked here.

Both parties appealed. On 14 November 2023, the Full Court handed down its decision on the appeal. Ford’s challenge to the Trial Judge’s finding that the Affected Vehicles were not of “acceptable quality” was unsuccessful, and the Full Court decided that the defects affecting the Affected Vehicles were more extensive than the Trial Judge had found. However, the Full Court ruled that Ms Carpic’s damages ought to be assessed differently than they had been assessed by the Trial Judge. A copy of the Full Court’s judgment is available on the Federal Court’s website here.

Ms Capic appealed to the High Court of Australia. On 6 November 2024, he High Court delivered judgment in the appeal (along with the related appeal in the Toyota proceeding). Ms Capic was largely successful on the appeal. The important aspects of the High Court’s judgment are extracted below and the full judgment is located here

• When a company fails to comply with the statutory guarantee of acceptable quality – as occurred in this case – 'affected persons' may, if they qualify, recover damages for two types of losses: (a) reduction-in-value losses; and (b) consequential losses.

• Reduction-in-value damages, being damages for the difference in the value of the Affected Vehicle by reason of the failure to comply with the consumer guarantee at the time of supply to the relevant consumer.

• Consequential losses, being losses suffered by the affected person because of the failure to comply with the guarantee (e.g. losses on resale, costs associated with unscheduled service visits, excess financing costs, GST and stamp duty).

• The High Court found that the right to claim reduction-in-value damages runs with title or ownership of the Affected Vehicle.

• The High Court also found that the right to claim for consequential losses is not tied to title or ownership and, therefore, consequential losses may be available to all Group Members who have owned an Affected Vehicle. This means that, even if you have since sold your Affected Vehicle, you may be entitled to recover consequential losses. Consequential losses will depend upon your individual circumstances.
• As a result of the High Court judgment, the matter was remitted to Justice Perram to determine damages in accordance with the High Court’s reasons.

On 19 December 2024, the Federal Court approved orders amending the group definition to include all persons who purchased, leased or otherwise acquired an interest in an Affected Vehicle between 30 November 2018 and 20 December 2024 (New Group Members). If you purchased, leased or otherwise acquired an interest in an Affected Vehicle between 1 January 2011 and 29 November 2018 (and have not opted out of the class action), you have always been, and continue to be, a group member (Existing Group Members). Notices were subsequently approved by the Court to be sent to each category of group member. The notices contain important information regarding the High Court judgment.

• A copy of the Existing Group Member Notice is located here.

• A copy of the New Group Member Notice, including the opt out form, is located here. The deadline to opt out was 19 March 2025 and has since passed.

On 20 June 2025, Justice Perram delivered his decision on the remitter of Ms Capic’s claim.

• After considering the High Court’s reasons, the Court reached the same conclusion it reached first time around: by reason of its defective design, Ms Capic’s Ford Focus was worth 30% less than what she had paid for it. Additionally, she was awarded compensation for excess financing costs, stamp duty and GST, plus interest. A copy of the remitter judgment is linked here.
• It adds up. In total, her damages will be approximately ~$23,000, which is about the price she paid for her car ($24,542.27, before taxes and on road costs).
• In the next few months, the Court intends to program a hearing on the remaining issues for the group members, including the quantification of damages to which they may be entitled. 
• One assumes that group members who purchased their cars at around the same time Ms Capic did – December 2012 – or before that, are well placed to obtain reduction-in-value damages awards of 30% of the price they paid, plus interest – and more if they financed their cars. Depending on their individual circumstances, group members may also qualify for consequential losses. Persons who purchased their affected Ford vehicles after December 2012 are also likely be entitled to damages, in an amount to be determined.
• However, the judgment also recognised that, “although it is not certain, it is quite possible that once a group member ceases to own their vehicle, they will lose the entitlement to reduction in value damages”. That being so, Ms Capic is determined to have their claims determined as soon as possible, so they do not need to retain their cars for any longer than they need to. The Court clearly appreciated this issue, noting its desire to relieve Ford of any “unhealthy incentive to drag its feet”.

We will update this website once orders have been made programming a hearing on group members’ claims.

Importantly, to reiterate the above, if you wish to remain entitled to reduction in value damages, you should retain ownership of your Affected Vehicle.

Please do not direct any questions about the class action or this notice to Ford or any Ford dealer. If you have any questions, you may contact the lawyers for the Applicant, Corrs Chambers Westgarth, by emailing fordclients@corrs.com.au, or seek independent legal advice.

Click here to register your interest in the Ford Australia Class Action. We will then make contact to provide you updates on the case, including the outcome of the case once the Court makes a decision, going forward.

Yes. We take your privacy and information security very seriously. We will not disclose your information to anyone else or use it for any purposes except for the claim against Ford.

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