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Ford faces class-action lawsuit for selling vehicles without brake override systems

A total of 20 Ford customers are suing the automaker in a class-action lawsuit for selling vehicles "vulnerable to unintended acceleration." According to Reuters, the suit names 30 models built between 2002 and 2010 with electronic throttle control systems but without a brake override system. Those include the 2004-2012 F-Series pickups and the 2005-2009 Lincoln Town Car. Adam Levitt, a partner with the law firm of Grant & Eisenhofer says the plaintiffs in the case want "to be compensated for their economic losses by having overpaid for cars that contained defects." Levitt contends that the plaintiffs would not have bought their vehicles or paid less for them had they known there was no brake override system in place.
Ford began installing brake override systems in its vehicles beginning in 2010. In response to the lawsuit, Ford has pointed to research by the National Highway Traffic Safety Administration that indicated that unintended acceleration is mostly caused by driver error, saying in a statement that, "NHTSA's work is far more scientific and trustworthy than work done by personal injury lawyers and their paid experts."
Belville et al v. Ford Motor Co. will be heard in US District Court in the Southern District of West Virginia.

Ford secures Microsoft for software updates

Ford is dropping Microsoft later this year as its infotainment partner when the Blue Oval switches to the BlackBerry QNX operating system for Sync 3 (pictured above). However, the two companies aren't severing ties completely, because the Redmond, WA, outfit is taking responsibility for Sync 3's wireless updates. Don Butler, Ford Director of Connected Vehicles and Services, announced the deal during a speech, according to Automotive News. "We've obviously had a good, long relationship with Microsoft," he said. "Microsoft understands the automotive environment and the kinds of experiences that we'd like to enable." The ability for Sync 3 to accept Wifi updates was announced as a major feature the new infotainment system, but this was the first mention of how that has been handled. Ford will host the files on Microsoft's Azure Cloud servers, according to Automotive News. Owners will need to give permission to check for new software, and they'll be notified after an improvement's installation. Dealers will install Wifi transmitters to keep vehicles on the lot up to date, as well. Sync 3 is set to replace the much-maligned MyFord Touch later in 2015 on some 2016 model year vehicles, and by next year it should be available throughout the Ford and Lincoln lineups. In addition to the wireless updates, the new system also promises a simplified interface, better voice recognition and faster response times. Ford Motor Company is preparing for vehicle ownership and user experiences of the future with the creation of a global cloud based Ford Service Delivery Network enabling new ways for consumers to interact with cars. Teaming up with Microsoft, Ford will expand connected services for customers around the world using the globally scalable and reliable Azure Cloud infrastructure. Ford and Lincoln owners will benefit from the convenience of new connectivity services keeping them better informed and in control of their vehicle at all times with the expanded availability of features like scheduled remote start, vehicle finder, and vehicle status (fuel or charge level, tire pressure). Building the Ford Service Delivery Network (SDN) on the Microsoft Azure platform enables a common platform for Ford to bring new features and services to market faster, quickly scale up for global implementation, and remain flexible for the future. Starting later this year, the Service Delivery Network will first enable over-the-air software updates for SYNC 3.

Ford family keeps special voting rights

Ford Motor Company has a dual-class stock structure of Class A and Class B shares. The roughly three billion Class A shares are for the general public like you and me, while the roughly 71 million Class B shares are all owned by the Ford family. Each Class A share gets the shareholder one vote, each Class B share is worth 16 votes, the result being that Common Stock holders control about 60 percent of the company while the Ford family controls 40 percent even though it holds far fewer shares. The only way that could ever change would be if the Fords sell their Class B shares, but even so, Class B shares revert to Class A when sold outside the family, so they'd have to sell a whole bunch of them.
A contingent of Class A shareholders think the dual-class system is unfair, and for the past few years a vote's been held during the annual shareholders meeting to end it. It has failed every time, as it just did again during the meeting held this week. A smidge over 33 percent voted to end the dual system, outvoted by the 67 percent who are happy with the way Ford is going - unsurprising in view of a corporate turnaround that will be part of business-class curricula for years to come.
On the sidelines, Ford elected Ellen R. Marram to the post of independent director, the first woman to hold the job. The former Tropicana CEO and 20-year Ford board member replaces retiring board member Irvine Hockaday who helped bring Alan Mulally to the CEO position.