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Car maker Ford Australia is embroiled in a legal stoush over allegations it gave customers a bum steer about transmission issues in several of its models and blamed drivers for the problem.

The Australian Competition and Consumer Commission (ACCC) is taking legal activity against Ford Australia over its treating of customers who had problems with its Concentrate, Fiesta and EcoSport vehicles with a PowerShift transmission bought inbetween two thousand eleven and 2016.

About half of 70,000 cars sold had at least one repair relating to the transmission, the ACCC says, with customers complaining about excessive shuddering and jerking when accelerating, loss of gear selection, unexpected loss of power and excessive noise.

ACCC chairman Rod Sims alleges from two thousand eleven to May 2015, Ford Australia refused to provide a refund or replacement vehicle to most buyers even after numerous repairs had failed to fix the problem.

The ACCC also alleges that from May two thousand fifteen until at least November 2016, Ford Australia told customers they could only get a replacement car if they paid towards the fresh vehicle under an “proprietor loyalty program” introduced in response to complaints.

It alleges that as of July last year, more than eight hundred customers had paid on average around $7,000 towards replacement cars, totalling more than $6.Five million.

The ACCC’s Federal Court act alleges Ford “engaged in unconscionable and misleading or deceptive conduct” in treating customer complaints.

“Ford’s conduct towards customers who had complained of issues with their vehicles was unconscionable,” Mr Sims said in a statement on Wednesday.

Ford Australia chief executive Graeme Whickman said the company would fight the allegations.

“We absolutely refute that we have acted in an unconscionable manner,” he told reporters in Melbourne.

“At no point did we seek to deny customers’ their rights under Australian consumer law.”

Mr Whickman said a Department of Infrastructure and Regional Development investigation had found there was no safety issue related to the cars involved.

He said his own mother drives a two thousand eleven Fiesta and he has assured her it is safe.

The ACCC has also alleged Ford “misrepresented” to customers that problems were caused by the driver’s treating of the vehicle, despite the company being aware of “systemic issues” from at least 2013.

Mr Whickman said it was wrong to suggest Ford Australia had blamed drivers for the transmission problems.

“The transmission actually learns and adapts to a driver . but it was never our intent to suggest that the customer was at fault,” he said.

The ACCC alleges Ford also onsold vehicles returned under the holder loyalty program without disclosing the past issues experienced with those vehicles to the fresh buyers.

Mr Whickman said Ford Australia does not on-sell returned vehicles without very first completing any work to ensure they meet technical and warranty specifications.

He said repairs were available on PowerShift transmission issues and all fresh cars on the market have the latest updates.

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