Ford Reaches Agreement in Ignition System Lawsuit

Ford reached a preliminary agreement to settle lawsuits in five states, by offering to pay
for replacement of defective thick-film ignition systems in millions of cars. Most were
built between 1983 and 1995. Many owners claimed the systems could stall in dangerous
situations. The settlement is considered to be a warranty extension and not a recall. It
affects more cars than any recall in the nation’s history. An estimated 22 million vehicles
were built with the ignition system and as many as 15 million are thought to still be in
use. Besides California, the settlement also covers class-action lawsuits in Alabama,
Maryland, Tennessee and Washington; a class-action lawsuit in Illinois is not part of the
settlement.

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