An Ohio judge ordered Ford to pay $2 billion to thousands of its dealerships to settle a 2002 lawsuit. Dealers brought the class-action lawsuit after Ford overcharged them for commercial trucks over an 11-year period.

The cash reward breaks down like this: $781 million in damages and $1.2 billion in interest will be divided up among nearly 3,000 dealerships after being overcharged on nearly 475,000 trucks.

According to Ford, the lawsuit covered 600 Series and higher trucks built between 1987 and 1997. Dealers accused Ford of failing to let them know about price concessions given to some dealers. Ford says it will appeal the decision, so the $2B likely isn't going anywhere just yet.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 14 Comments
      Sorten Borten
      • 3 Years Ago
      $1.2B in interest on $781M? I wish I were getting that kind of return on my money.
        SheldonRoss
        • 3 Years Ago
        @Sorten Borten
        1992-1997 = 14 years ago at least. At 4% = 1.04^14 * 781M = 1.35 billion. If your not getting that kind of return on your investment, get a better financial advisor. Hell plenty of blue chips pay around 4% just in dividends.
          SheldonRoss
          • 3 Years Ago
          @SheldonRoss
          Misread, apologies, at 1.2B in interest - not interest and principal - It's a little harder, so the total is 2B. To get it up to the 2B you would need 7% return 1.07^14 =2.01 B. Still on the lower end of returns. 7% in just dividends is doable, not taking in to account capital appreciation.
      David Rios
      • 3 Years Ago
      and who ends with the money the dealers and its owners, all pointless in the end.
        BOOBOO
        • 3 Years Ago
        @David Rios
        money needs to go to goverment bailout
          TruthHertz
          • 3 Years Ago
          @BOOBOO
          Wow you are dumb. Ford didn't take a bailout. Chrysler and GM took federal money. Do us a favor and don't vote in 2012. Obama doesn't need any extra support.
      thedriveatfive
      • 3 Years Ago
      Hmmm I bet ford stock will take a dump on monday creating an opportunity to buy into it at a cheap price.
      Frederick
      • 3 Years Ago
      If you're over paying for something over the course of 11 years because you "didn't know" when others did, that's really a personal problem. That would be like suing walmart because you "didn't know" about the coupons in the Sunday paper.
        SloopJohnB
        • 3 Years Ago
        @Frederick
        Clearly the lawsuit is about something in the franchise agreement with the factory...since we don't know exactly what the beef is, I wouldn't characterize the dealer's suit as a personal problem. This goes back to Contract Law 101...what exactly did the contract say and did the factory live up to it.
      caddy-v
      • 3 Years Ago
      Does this mean that if Joe Blow down the street gets a better deal on his truck than me from the same dealer can I sue the dealer?
      MONTEGOD7SS
      • 3 Years Ago
      So the dealers are suing because someone got a better deal than them? Cool, can I do the same thing if a dealer doesn't give me as good of a deal as it does someone else?
      indymcsc
      • 3 Years Ago
      If only they had declared bankruptcy then they wouldn't have to pay this at all (see: All lawsuits against GM and Chrysler).
      Adrian
      • 3 Years Ago
      Seems like the dealers are shooting themselves in the head to save the foot. Why bite the hand that is currently feeding you great products and delivering sales? All this would do is hurt Ford's ability to deliver decent product like they're been doing as of late.
      BOB
      • 3 Years Ago
      OH CRAP< Now my new truck will cose a fortune
    • Load More Comments