Ford Agrees to Pay Out Over Faulty DSP6 Transmissions

Ford Motor Co. has agreed to settle a class-action lawsuit with almost 2 million owners and former owners of Focus and Fiesta models equipped with the now infamous six-speed dual-clutch PowerShift transmission. Internally referenced as the DSP6, the unit was a known problem prior to installation. Last year’s scathing report in the Detroit Free Press showed its dark history in gory detail, indicating the automaker had painted itself into a corner and ignored warnings from both engineers and legal advisors not to use the DSP6.

Complaints of vehicles shuddering and stalling, bizarre delays between gear changes, and even full-blown failures to go into gear began streaming in — leaving Ford to pick up the pieces and attempt to downplay the failure as much as possible. Unfortunately, more engineers came forward to bash the transmission over its development and implementation. Johnny-on-the-spot for the topic, the Detroit Free Press recently reported that Ford agreed to settle — with one of the lawyers brokering the deal saying the payout could exceed $100 million.

We’ve also learned how much money Ford spent repurchasing defective vehicles through a voluntary arbitration program conducted during the legal appeal. Court documents state the company bought back 2,666 vehicles for around $47,500,000 between October 2017 and December 2019.

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More Engineers Come Forward Over Ford's Bunk DSP6 Transmission

In July, we covered a scathing report that criticized Ford Motor Co’s usage of the DSP6 dual-clutch transmission found in the third-gen Focus and sixth-gen Fiesta. The hardware was surrounded by controversy, with company insiders highly critical of its implementation. Claims arose that the unit wasn’t performing as intended throughout its development, with corporate lawyers expressing serious doubts as to whether DTC technologies (which were relatively new at the time) were the automaker’s best choice.

Hindsight seems to have proven them right. The PowerShift DSP6 turned out to be a turd the company polished to the best of its ability and then put on sale, leading to more headaches. Officially, the manufacturer has said the vehicles were safe when introduced and have remained so. Still, Ford is well aware of the tranny’s issues; since the problems came to light, the automaker has extended warranties and encouraged service centers to repair their problematic transmissions.

While a kind gesture, some remain concerned that Ford appears to be sweeping the whole issue under the rug. Customers are angry, claiming the automaker should have never put the unit into production — a move that resulted in civil litigation. But that doesn’t appear to have ever been a real possibility. Those who tried to stop the DSP6 claim they were doomed to failure from the start.

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Not Quite a Recall: Ford Extends Transmission Warranty for DSP6

Ford took some heat after reports emerged that it was well aware of the issues plaguing the PowerShift transmission found in third-gen Focuses and sixth-gen Fiestas. While the automaker has issued numerous recalls on the vehicles in question, the transmission was never officially included. Instead, Ford provided impacted owners with extended warranties on the problematic DSP6 tranny and issued a software update.

Hoping to quell public outrage, the manufacturer said on Wednesday that it will stretch the warranty on certain 2014-16 model year Focus and Fiesta vehicles by two years and 40,000 miles. It also announced that software updates are incoming for customers who found the six-speed dual clutch a nonstop headache. While not quite a recall, it puts Ford on the hook for transmission repairs some customers had to pay for out of pocket.

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Transmission Trouble: Report Claims Ford Knew Focus/Fiesta DSP6 Was Defective

Making a mistake while trying to remedy an earlier one is a routine part of the human condition. We’re imperfect creatures and sometimes the easiest solution after a string of foulups is to just sweep something under the rug and hope nobody ever bothers to look there — even though they probably will. Incredibly, this logic can spread to an entire organization and with roughly the same effectiveness.

Earlier this week, Ford issued a safety recall on select Focuses manufactured within the last decade (1.5 million were recalled previously). But not before becoming the subject of a scathing report from the Detroit Free Press claiming the automaker knew the cars had bunk transmissions and did everything in its power to keep that under wraps in order to continue selling them.

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  • Lou_BC Blows me away that the cars pictured are just 2 door vehicles. How much space do you need to fully open them?
  • Daniel J Isn't this sort of a bait and switch? I mean, many of these auto plants went to the south due to the lack of unions. I'd also be curious as how, at least in my own state, unions would work since the state is a right to work state, meaning employees can still work without being apart of the union.
  • EBFlex No they shouldn’t. It would be signing their death warrant. The UAW is steadfast in moving as much production out of this country as possible
  • Groza George The South is one of the few places in the U.S. where we still build cars. Unionizing Southern factories will speed up the move to Mexico.
  • FreedMike I'd say that question is up to the southern auto workers. If I were in their shoes, I probably wouldn't if the wages/benefits were at at some kind of parity with unionized shops. But let's be clear here: the only thing keeping those wages/benefits at par IS the threat of unionization.