Jun 24, 2008 12:27 pm US/Pacific
Document Reveals Ford Knew About Paint Problems
SAN FRANCISCO (CBS 5) ―
A Technical Service Bulletin that Ford sent to its dealers in December, 2004, and reissued in 2006 shows they've known about paint problems with their vehicles for years. And it's much bigger than just a few SUVs. It affects 12 models, from 2000 to 2005.
"This is one hot document! It's good evidence that Ford knew exactly what was wrong with the vehicles," said Rosemary Shahan of Consumers for Auto Safety and Reliability.
Shahan helped pass California's Lemon Law and believes this bulletin is proof that Ford knows its paint problems are caused by a factory defect.
"They hate to put out service bulletins. It's like a smoking gun. It's practically an admission that they know they have serious problems with these vehicles," said Shahan.
How serious a problem? CBS5 learned that since 2006, the Center for Auto Safety has been urging Ford to reimburse all owners of Fords who have peeling paint issues.
Ford owners like Janet Behr and Karen Walton. Both own 2003 Ford SUVs. Behr noticed the roof of her Ford Expedition was rusting.
"When I got up there I saw peeling paint," said Behr.
Karen Walton recently talked to someone at Ford about the same problem with her 2003 Explorer.
"She said they did not have any recalls in their system for any paint problems and that was the first she had heard about it," said Walton.
Both owners say Ford never told them about the bulletin and refused to fix their cars until ConsumerWatch got involved.
Shahan said automakers like to keep Technical Service Bulletins "hush hush." That's why they're often called "secret warranties." "It's when there's a defect in the product and the manufacturer is keeping it secret," said Shahan.
She said the manufacturer admits there's a problem, but doesn't tell the customer that they may be entitled to reimbursement for the repair.
"Part of the problem with secret warranties is that you can have two people with the identical problem, one of them gets it taken care of and the other just gets the run-around," said Shahan.
In Janet's case, Ford paid nearly 100% of the repainting cost. In Karen's case, they offered 50%. One possible difference? Janet's family has owned eight fords. Karen's only two.
In an email, Ford told CBS5, "We do factor owner loyalty into these decisions."
Janet Behr thinks that's a bad idea. "That's absolutely wrong. I don't care if you have a Pinto, you have to take care of your customers the same," she says.
Ford told us it's "highly unlikely" the paint problems originated at the factory and said they could be caused by weather or pollution.
But Ford's own bulletin said its own "testing revealed" that the problem occurs "prior to it being painted."
Ford says Technical Service Bulletins are merely a courtesy to give body shops directions on how fixing a problem.
Shahan thinks otherwise. "It's ridiculous to say that it's for body shops. This isn't the result of dents. We're talking about the skin they put on the vehicle is going to blister," says Shahan.
Both Janet and Karen agree. And they aren't buying Ford's reasons why the paint is peeling on their five year old cars.
"It's dishonest, and Henry Ford would not like that," said Behr.
CBS5 exchanged the following questions and answers with a Ford spokesman over email:
Ford issued a Technical Service Bulletin 04-25-1 in December of 2004 and it was updated in 2006. Why did Ford issue these bulletins?
To instruct repair facilities in avoiding iron contamination when making repairs to aluminum body panels. This is addressing accident repairs, not original paint application.
Did Ford receive complaints from customers regarding the paint peeling off their cars?
Every manufacturer receives complaints of this nature. Each is looked at on a case-by-case basis. The number of complaints is exceedingly low.
Why would two customers with very similar problems get two very different resolutions from Ford? This sounds like a secret warranty.
On the contrary, two identical resolutions would be indicative of a warranty action. After-warranty adjustments are administered based upon numerous conditions including mileage, time in service, owner loyalty, service/maintenance history and environmental factors such as exposure to the elements. No two cases are alike, and once a vehicle is beyond its warranty, the determination any Ford Motor Company participation in the repair is based upon these considerations.
Does Ford feel the peeling paint problem originated at the factory?
Highly unlikely. We paint thousands of vehicles in identical, controlled conditions.
Considering the fact that none of our interviewees was ever in an accident and their cars never had been in a body shop, how can you explain where the paint problems originated?
Many factors affect paint durability, including maintenance and exposure to ultraviolet light (sun). A combination of factors can lead to paint degradation on any painted surface, particularly on metal if exposed to extreme temperature variations, pollution (especially industrial fallout), salt air, debris from trees, etc.
Loyalty, why should someone who buys only one Ford be treated differently than someone who's purchased to eight?
We do factor owner loyalty into these decisions, as do many industries (airline frequent fliers, restaurant coupons, etc.).
--For more information on technical service bulletins, and to find information on your vehicles, see the "related links" on the right side of the screen.
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