Ford settles Explorer litigation

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Ford has settled a long-running class action lawsuit about whether its Explorer models built between 1991 and 2001 were prone to rolling over.

The deal applies to about one million people in California, Texas, Illinois and Connecticut whose vehicles had lost value because of the perceived danger.

Ford has also faced wrongful death and injury law suits across the country following a series of accidents.

Ford had earlier blamed Bridgestone Firestone, which made their tyres.

Worries

The federal government began investigating the tyres after receiving numerous complaints.

More than 250 people were killed in accidents involving tread separation on the tyres.

Many of the tyres were fitted to Explorer vehicles at the time they failed.

The defective tyres were recalled in 2000 and 2001, and in 2005 Bridgestone Firestone agreed to pay Ford $240m (£116m) to settle its liability.

The settlement is expected to give each of the claimants either a $500 voucher that can be used to reduce the price of a new Explorer, or a $300 voucher for any other Ford model.

Ford will also have to distribute information about any rollover dangers on sports utility vehicles, and limit safety claims in its advertising.

It brings to an end a marathon legal process that began in 2000 and went to court for 50 days earlier this year.

Electronic stability control, which automatically applies brakes to individual wheels if they begin skidding off course, will be compulsory in all new vehicles in the US by 2012.

A preliminary approval hearing for the settlement is scheduled for Monday.