Ford Powershift Class Action

The amount of compensation that class members may receive will depend on a range of factors, including how much the vehicle was sold for, and how many of the five mechanical deficiencies the vehicle was supplied with.

Depending on their circumstances, class members may be entitled to two types of compensation under the Australian Consumer Law – (i) reduction in value damages (available to current owners of an affected vehicle ); and (ii) consequential losses (available to past and current owners of an affected vehicle ).

The Court has found that the lead applicant’s Ford Focus vehicle was worth 30% less than what she paid for it – i.e., $6,820.91 in reduction in value damages. Additionally, the lead applicant was also awarded consequential losses for excess GST, stamp duty and finance repayments that she had paid. The lead applicant was also awarded prejudgment interest on these amounts.

In total, the lead applicant was awarded $22,941.19. This is around the price she had paid for her Ford Focus vehicle (before taxes and on-road costs).

Signing up to this class action will not expose you to any upfront costs.

All costs in the class action will be borne by the litigation funder, Martin Place Litigation Services Pty Limited, unless and until there is a successful outcome in the class action.

If there is a successful outcome, any costs payable by or to Corrs Chambers Westgarth, or to the litigation funder, will be deducted from, and will not exceed, any compensation that you are entitled to receive. The litigation funder intends to seek an order to distribute the burden of reasonable legal costs, fees and other expenses, including reasonable litigation funding charges or commission, equitably and fairly amongst all class members who have benefited from the action.

All such costs and commissions are required to be considered and approved by the Court. 

Nothing. 

As a class member (and not the lead applicant, in whose name the case has been brought), an adverse costs order cannot be made directly against you in respect of the determination of the common issues in the class action. 

The litigation funder has agreed to be responsible for paying any adverse costs ordered in the class action.

The Federal Court of Australia has determined that certain Ford vehicles were not of “acceptable quality” within the meaning of section 54(1) of the Australian Consumer Law and that the lead applicant has suffered loss and damages as a result.

As outlined above, depending on the circumstances, the Australian Consumer Law may give group members two types of damages:

1. reduction in value damages – these represent the difference between; (i) the price paid by the consumer who purchased the car from a car dealer; and (ii) the true value of the car at that time, taking into account its defects; and
2. other consequential losses – these represent other losses which current or former owners may have incurred because their car wasn’t of acceptable quality.

February 2026 Judgment

On 2 February 2026, the Court delivered judgment on some remaining issues:

• who is entitled to claim reduction-in-value damages;
• how reduction-in-value damages are calculated;
• whether Ford can avoid claims by current or former owners where they purchased their cars after 29 November 2018; and
• whether current owners need to hang on to their cars until the class action is finished to recover reduction-in-value damages, or whether they may sell or otherwise dispose them now without losing their rights.

We did very well.

The Court ruled:

• that current owners who can show that their car was unacceptable at the time it was sold by the last dealer who sold it are entitled to claim reduction-in-value damages (no matter how many prior owners of the car there may be);
• reduction-in-value damages are the difference between: (i) the price paid by the consumer who purchased the car from the last dealer who sold it; and (ii) the true value of the car at that time, taking into account the defects which made it unacceptable;
• Ford cannot avoid the claims of current or former owners just because they purchased their cars after 29 November 2018; and
• current owners who purchased their vehicle new do not need to hang on to their cars until the class action is finished to recover reduction-in-value damages.  Nor do current owners who purchased their vehicle used via a private sale and provided that no prior owner had purchased the vehicle in used condition from a dealer.

Although it was a good result, we have decided to appeal parts of it.  We will ask the Court of Appeal to rule that:

• current owners need only show that their car was unacceptable at the time it was sold by the first (not the last) dealer who sold the car to recover reduction-in-value damages; and
• reduction-in-value damages are the difference between: (i) the price paid by the consumer who purchased the car from the first (not the last) dealer who sold it; and (ii) the true value of the car at that time, considering the defects which made it unacceptable.
• The Court should have ruled that current owners do not need to hang onto their cars until the class action is finished to recover reduction-in-value damages, no matter whether they purchased their car in a new condition or a used condition, and no matter whether their car has been re-traded by a dealer.

Critical message

Ford has approximately one month to file any cross appeal (i.e. until mid-April 2026).  Until the time for Ford to file any cross appeal has passed, to remain entitled to claim reduction-in-value damages, we recommend that all group members retain title to their vehicles. We will provide a further update once the position is clear.

Next steps

The proceeding is currently listed for a five-day hearing in September this year to determine the quantum of group members’ entitlements to damages and interest.

Any appeals from the February judgment are unlikely to affect the September hearing.

The lawyers are Corrs Chambers Westgarth, Australia’s leading independent law firm.

The case is funded by Martin Place Litigation Services Pty Limited.

Unfortunately, the wheels of justice turn slowly, and class actions of this scale and complexity take many years to work their way through the Court system. This case has now reached the stage of the proceedings where the Court is set to resolve the remaining issues regarding the entitlements of class members.

We are bringing a claim against Ford on behalf of people who bought or leased (or otherwise acquired an interest in) certain Ford vehicles (either new and used) fitted with a “PowerShift” transmission, at any time during the period 1 January 2011 to 20 December 2024. We estimate that there are approximately 73,000 affected vehicles. All owners, past and present, of these vehicles may be class members.

People who acquired a second-hand vehicle may be eligible for compensation too.

The Federal Court has recognised that “it is quite possible that once a group member ceases to own their vehicle, they will lose the entitlement to reduction in value damages”. Accordingly, class members who currently own their vehicle and wish to remain entitled to reduction in value damages should retain ownership of their vehicle. However, class members who no longer own their vehicle may still be entitled to consequential losses.

There are several reasons why a vehicle may be ineligible, including:

• It is not a model fitted with the “PowerShift” dry dual-clutch transmission system.
• It was not acquired within the relevant time period.
• You have already settled your claim with Ford.
• You have opted-out of the class action.

People who have sold their vehicle may still be eligible to receive compensation for consequential losses.

Our legal team are working hard behind the scenes to progress your claim and are making good progress. We will endeavour to provide you with regular updates, either through this website or via Court-approved notices.

In addition, you can always get in touch via email at fordclients@corrs.com.au.

Yes. We take your privacy and information security very seriously. We will not disclose your information to anyone else or use it for any purpose except for the claim against Ford.