Ford could face suit over troublesome truck engine

Ford Motor Co. once again could be haunted by a diesel engine problem resulting from a batch of bad engines used in 2003- and 2004-model trucks.

A federal court reinstated a lawsuit Wednesday against Ford alleging that the automaker equipped its 2004-model diesel-powered Super Duty pickups with flawed engines from the 2003 model year.

The ruling reopens a motion previously filed to give the suit against Ford class-action status.

The 6th Circuit Court of Appeals in Cincinnati ruled in favor of Kenneth E. Corder of Louisville, Ky., who sued Ford in 2005.

According to court documents, Corder purchased a 2004 F-250 Super Duty pickup that contained a 2003 model year version of the 6.0-liter Power Stroke, instead of the improved 2004-model engine.

Corder said he waited to purchase the 2004 model because of "widely reported problems" with the 2003 engine model, according to court documents.

"The engine in the 2003 F-250 truck was notorious for its deficiencies, which were widely publicized, including leaky fuel injectors, oil leaks, broken turbochargers, wiring harness troubles, faulty sensors, defective exhaust gas recirculation valves and bad computers," U.S. District Judge William Schwarzer wrote in an opinion Wednesday.

Corder sued Ford in 2005 and filed a motion for class-action status to represent anyone who bought a 2004 pickup with a 2003-model engine.

A two-judge majority of three federal judges ruled in favor of reinstating the case. The dissenting judge was U.S. District Judge David McKeague.

"Ford is disappointed with the decision," spokesman Marcey Evans wrote in an e-mail to Automotive News. "The company agrees with Judge McKeague that it is not misleading or deceptive not to inform car purchasers about the manufacturing history of vehicle components, and that the plaintiff in this case, who is satisfied with his properly-performing vehicle, has suffered no loss. We believe that a jury is likely to reach these same conclusions as well."

Ford argued that its engines do not have model years. But Schwarzer wrote today there is "substantial evidence" that Ford distinguished between the 2003 model and 2004 model diesel engines, according to court documents.

The documents cite internal letters from Ford that distinguish between a 2003 engine and 2004 engine.

A U.S. district judge dismissed the suit in 2007 before ruling on the motion seeking class-action status.

The case now returns to U.S. District Court in Louisville for further proceedings.

Ford faced engine problems in 2003- and 2004-model Power Stroke trucks. Automotive News reported in 2005 that at least 58 suits were filed against Ford involving quality problems with the engines.

Ford said in 2005 that its warranty costs soared by $500 million through the first nine months of that year compared with the same period in 2004. Part of the increased costs were to pay for repairs of the faulty diesel engine.