DETROIT, May 1, 2000 -- Facing a growing storm of consumer unrest and a major class action lawsuit charging faulty head gaskets, Ford Motor Co. today extended warranty coverage on nearly 300,000 1994-95 model Mustangs, Thunderbirds and Mercury Cougars.
Ford will now offer a seven-year, 100,000-mile warranty -- whichever comes first -- on certain models equipped with the popular 3.8-liter V-6 engine. In February, Ford extended the warranty on 717,000 front-wheel drive vehicles, including 1994-95 Tauruses and Mercury Sables, 1995 Windstars and 1994 Lincoln Continentals. The normal warranty is three years or 36,000 miles.
Under the program, Ford will reimburse customers for past repairs or give them $4,000 towards the purchase of a new Ford or Mercury. The reimbursement will be paid regardless of whether the repairs were done by a Ford dealer, Ford spokesman Mike Vaughn told the Cleveland Plain-Dealer. The new policy also covers owners who bought the vehicles used.
Owners of the affected models will receive a letter in mid-May telling them how to apply. Those who bought their vehicles used should contact a Ford dealer, the company said.
Ford had resisted extending the warranty on rear-wheel-drive models, insisting there was no problem. But the company conceded yesterday that there "appears to be a problem."
"It was well-documented that the rear-wheel-drive vehicles had the same problems," Jason Kennedy of the Center for Auto Safety told the Detroit News.
The cost of the warranty extensions is estimated at as much as $300 million by industry observers.
