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Alabama gets $300,000 In Ford Settlement

Dec 21, 2002 | AP

Alabama will receive $300,000 as part of a $51.5 million settlement between Ford Motor Co. and the 50 states in which the company agreed not to advertise that sport utility vehicles handle like cars.

The company also agreed to disclose the risk of rollover.

The company and states reached the agreement Friday in a $51.5 million settlement that includes the creation of a $30 million nationwide public service consumer education campaign on SUV safety that will be used in all the states. The campaign will not focus on any individual make or model.

"This investigation was about fair advertising and consumer safety," said Alabama Attorney General Bill Pryor in a news release. "Ford recognizes the value of consumer education and has now accepted the responsibility of raising consumer awareness about SUV safety."

The $300,000 will be used primarily to pay for Alabama's role in the investigation, officials said.

The carmaker will pay $300,000 each to all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands, said Pryor.

The claims stem from the states' investigation of rollover accidents involving faulty Firestone tires and the Ford Explorer, the world's best-selling SUV. Thousands of people were killed and injured when their Explorer rolled after tire failure.

The attorneys general began an investigation into Explorers about a year ago.


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