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Car owners take two automotive giants to High Court over faulty vehicles

As we navigate the roads of life, we expect our vehicles to be reliable companions.

However, for many Australian drivers, their trust in two automotive giants has been shaken to the core.

The High Court will become the battleground for a significant legal tussle involving Toyota and Ford, with the potential for compensation claims to soar into the billions.
The heart of the matter lies in the serious faults discovered in some of the vehicles produced by these manufacturers.

This has prompted class actions against both companies, with car owners demanding justice for the inconvenience and potential danger they've faced.

Car owners are taking legal action against Toyota and Ford in the Australian High Court over faulty vehicle compensation claims.

The case against Toyota revolves around a defect that has affected more than 264,000 vehicles, including popular models like the Hilux, Fortuner, and Prado, sold between 2015 and 2020.

The issue at hand is the malfunctioning diesel particulate filters, which were designed to capture and burn off harmful pollutants before they could escape into the atmosphere.

Instead, these faulty filters led to vehicles emitting foul-smelling white smoke, a decrease in fuel efficiency, and increased engine wear and tear.

Toyota's response to the problem stopped short of a full recall. In 2019, they initiated a campaign to clean, replace, or retrofit the affected vehicles.

However, the damage was done. An initial Federal Court ruling suggested that the defect devalued the cars by 17.5 per cent, roughly equating to $7,000 per vehicle.

This could lead to a staggering $2 billion compensation claim. Although this valuation was later reduced on appeal, the car owners are now seeking to have the original assessment reinstated by the High Court.



Ford's woes are centred around more than 73,000 vehicles, including the Fiesta, Focus, and Ecosport models sold between 2011 and 2018.

The class action, spearheaded by Biljana Capic, who experienced repeated issues with her Ford Focus, highlighted several key faults in the dry dual clutch transmission.

These faults led to harsh gear changes, sudden deceleration, intermittent engine revving, shuddering, and loss of power—issues that not only affect the driving experience, but also raise safety concerns.

Some of the vehicles exhibited only a portion of the faults, while others displayed all of them.

According to Ms Capic, despite numerous service visits and repairs—at least 15 times—the problems persisted.

While Ford acknowledged the manufacturing deficiencies, in its High Court submissions, it explained, ‘Ms Capic's vehicle was supplied in breach of the acceptable quality guarantee by reason of being manufactured with each of the deficiencies.’

‘In Ms Capic's case, the risks had, in fact, manifested in her vehicle.’

However, Ford argued that although other plaintiffs involved in the class action purchased vehicles with a ‘propensity’ for the faults, not all of the vehicles experienced these issues.

‘There was no evidence that any vehicle had become undriveable,’ Ford lawyers asserted.

Ford gradually implemented repairs for the vehicles.



The central issue in the case against Ford revolves around a violation of the Australian Consumer Law's guarantee that products meet an acceptable standard.

According to the law, compensation could be sought for any decrease in the value of the products due to a failure to meet this guarantee.

The key contention in these instances is determining the basis for calculating this compensation.

These cases will be heard consecutively by the court over the next two days.

Key Takeaways
Angry car owners are taking Toyota and Ford to the High Court in Australia over compensation claims for faulty vehicles.
Toyota is being sued for malfunctioning diesel particulate filters in over 264,000 vehicles, while Ford faces action over faulty gearboxes in more than 73,000 cars.
The Toyota case involves vehicles producing foul-smelling white smoke, resulting in reduced fuel efficiency and increased engine wear and tear.
In the Ford class action, the transmission faults resulted in harsh gear changes, sudden deceleration, and loss of power, with the case focusing on breaches of acceptable quality guarantee under Australian consumer law.