Ina Opperman
Business Journalist
1 minute read
25 Nov 2020
5:09 pm

Finally, compensation for Kuga owners whose cars went up in flames

Ina Opperman

According to the NCC it engaged with 76 consumers during the mediation period and resolved 53 of them. Three claims were rejected as the losses didn't fall within the parameters of the settlement agreement.

Kuga burning

Ford has now finalised the compensation for consumers whose Ford Kugas caught fire a few years ago, with only three consumers electing to take the matter further and 47 choosing to accept a payment of R50 000 each.

The National Consumer Commission (NCC) and Ford Motor Company South Africa (Ford) reached a settlement agreement earlier, which was made an order by the National Consumer Tribunal (NCT) in March this year.

According to this agreement, Ford agreed to pay each consumer R50 000 as compensation if their Kugas were distributed between 2014 and 2017 and was one of the 56 that caught fire when flames started in the engine compartment and damaged the vehicle.

Consumers could choose if they wanted to submit a claim for R50 000, with or without a claim for the loss of any movables, against Ford in terms of Section 61 of the Consumer Protection Act, or they could choose to proceed to prove damages in court at their own expense.

Advocate Terry Motau SC was appointed to provide alternative dispute resolution services.

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