The price of honesty? For Ford Australia, $10 million
Ford Australia's failed attempt at customer deception proves car manufacturers have not learned from the industry's past scandals, writes crisis communications expert Peter Wilkinson.
WilkinsonButler worked with Bannister Law on the case outlined in this piece.
We can learn a lot about how to do right from other people’s mistakes.
Ford Australia’s unconscionable conduct has finally caught up with the company and its decision makers. The $10m penalty was for deliberately blaming customers for a company fault.
It’s not hard to be honest. Ford Australia chose the alternative.
Wilkinson Butler’s relationship with Ford Australia customers started with a complaint about one small car, which led to a class action on behalf of thousands of owners. Our role has been to support the legal firm, Bannister Law in its fight to get justice for numerous Australians who cannot, solo, afford to take on the company.
Class actions are open to abuse but they are terrific for enabling justice for otherwise helpless individuals against large companies.
In short, Ford Australia’s people were telling car owners, mainly women it appears who complained about shuddering and jerking when accelerating, there was no problem. In many cases Ford folks claimed the issue was actually the women’s “driving style” — even though, according to the ACCC, Ford Australia was aware of the transmission problems in some Fiesta, Focus and EcoSport models.
The ACCC announced the Federal Court imposed the fine yesterday.
It seemed inevitable to us, from the beginning, that Ford would come unstuck with the deception. There were too many similar stories from too many people who had never met each other.
It’s a disturbing commentary on group-think that so many people in Ford must have wondered about the implausibility of the ‘company message’ and remained silent. But what starts as a tiny excuse can grow to become a big fat corporate lie. A quality company like Ford had its reputation needlessly trashed.
A few years ago, Ford Australia’s dishonesty would have been major news, but now that story is competing for media space against the even more monstrous consumer deceptions being exposed at the banking royal commission.
And the Ford deception follows the revelations about the Volkswagen emission scandal.
It makes it so much harder for the honest companies to earn trust, with good people working every day to do the right thing. In those companies, values and behaviours to do with integrity and quality are part of an everyday conversation.
Such is the growing distrust of companies, that the challenge now for good companies, and their executives, is not only to do the right thing, but be seen to be doing it.
It is getting harder and harder in this increasingly challenging communications era. It involves truth in marketing, and consistent, constant, accurate PR.
Peter Wilkinson is chair of WilkinsonButler. WilkinsonButler worked with Bannister Law on the case outlined in this piece. This post first appeared here.
… wonder when BMW will come clean about their gearbox problem that they still maintain is due to the customers’ “driving style”?
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Unfortunately this finding is only for owners who made a request for refund or no cost replacement vehicle between 1 May 2015 and 1 November 2016. I lodged my request mid 2017 for Ford to buy it back or pay me what the market value SHOULD be instead of being offered a trade in of $2k on a 4yr car with 45k on the clock, the Ford Case Manager he told me not to listen to all the ‘media hype’ that is currently around. Transmission has been done twice so far and it’s starting to shudder and get very clunky AGAIN. I was told in 2014 that it was the way I was driving the car. Their arrogance is astounding.
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Go to the watchdog / ombudsman
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This type of behaviour is standard operating proceedure for this compsny. Has neen for quite some time.
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I bought a focus after a test drive and being told by the salesman how the car adapts to the driver due to a few issues during the testdive, hook line and sinker. I then complained during my first 5000 kms service about the auto gearbox performance. Same story as everyone else i have read about in he last 12 months, too many drivers driving the car? The car needs to adapt to style of driving? Nothing wrong with the car! Only me who drives the car?! After a software updated the car remained the same. Complained at 15000 kms service same answer, that there is nothing wrong with the car. (So i just put up with it, adapted the way i drive to be safe on the road, although i have had several almost collisions due to lack of response form the car). I am currently schedule in for my first clutch replacement after in my last service (80000 kms) was pulled aside and offered a life cycle management application to ford to ask for a replacement or refund to replace the lemon I bought from ford. NOTE the mechanic done some sort of rev test that indicated the car was faulty… Needless to say it got rejected, so I have to now get the clutch replaced and try again with the application, after a ford representative stating it was unsafe to drive! Which I knew, I have been driving it for four years! If the next application is rejected the ford representative said I need to keep complaining so all of these complaints are on my file until they finally accept they have a problem with the car they have sold me… Should have went with the Mazda 3! I think they have fixed the gearbox nowith and are again conning people into getting it replaced instead of refunding or supplying another car… Will see what happens!
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Similar, story. I’ve had 3 clutches replaced and the current one, just over 12 months old is starting to play up. It’s been depressing having what was a great new car to have this ongoing problem. I feel that I’m stuck with it with no resale value of a 5yr old car. It was meant to be the last car before retirement but it definitely won’t last that long. The extended warranty for the clutch is an insult, 7yrs! Another month or two and I’ll be booking it in for another clutch replacement, that’ll be 4 over 5 years.
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