Dealer Letter

September, 1996

To:
All Ford and Lincoln-Mercury Dealers

Subject:
Owner Notification Program 96M89 - Villager Additional Engine Noise Condition Warranty Coverage - Certain 1995 and 1996 Villagers

OASIS
YES

Owner List
NO

Unsold Unit List
YES

Parts Return
YES - Use the Engine FQR Procedure.

Program Terms
Special No-Charge Engine Noise Condition Warranty Coverage to 7 Years/100,000 Miles, Whichever Comes First

Affected Vehicles
All 1995 and 1996 3.0L engine equipped Villagers built at the Ohio Assembly Plant May 1, 1995 through January 31, 1996.

Note
That this "M" program is on OASIS per the recent Dealer Bulletin which announced that new "M" programs will now be on OASIS.

Note
Also that new--unsold--dealer stock vehicles are not to be corrected unless they exhibit the noise condition covered by this program.

Reason For This Program
Ford Motor Company has become aware that the 3.0L engine in the affected Villagers may develop an engine "piston slap" noise condition as a result of reduced cylinder wall lubrication caused by elimination of an oil squirt hole in the connecting rod. (The oil squirt hole was reinstated for vehicles produced after January 31, 1996.) This condition is evident when the engine is cold and just started. It is an annoyance noise condition and may go away as the engine warms.

This condition is affected by ambient temperature conditions and has been seen in those market areas having temperature consistently below 20 Degrees F/-7 Degrees C.

Customers are being advised that there is no immediate engine problem that will affect the operation of the engine and that non-deductible warranty coverage is being extended, for this condition only, to 7 years/100,000 miles, whichever comes first, to maintain customer's complete satisfaction with their Villagers.

Service Action
When an owner returns for the service provided by this program you are to verify the condition and, if necessary, replace the engine. Engine replacement under this program is authorized only for the "piston slap" noise condition described. The Ford Quality Renewal (FQR) exchange program will be used for this service program. Please review procedures and requirements of the FQR exchange programs.

Engine replacement under this program must be for the specific "piston slap" engine noise condition. Unnecessary engine replacement for other than this specific condition may be subject to chargeback (repair rates will be monitored).

New, Unsold Dealer Stock Vehicles
Dealers that currently have new, unsold vehicles in stock that are involved in this program per the enclosed VIN listing, must provide the attached Customer Information Notice (Attachment I) to a purchaser prior to retail sale. The form describes the extended warranty coverage for this concern.

Dealers having affected new, unsold vehicles will receive a preprinted personalized notice (the VIN will be printed on the form) for each unsold vehicle. These forms are included with this dealer bulletin mailing. Present these forms to vehicle purchasers prior to the retail sale.

If an unsold dealer stock unit exhibits the "piston slap" concern, the engine in the stock unit may be replaced with a new engine. Dealers are responsible for compliance with disclosure laws that may apply to this repair.

Owner Notification
Owners will be notified by mail, including those who subsequently purchase new, unsold vehicles. Some owners may have had the service offered by this program performed on their Villagers prior to the announcement of the program. These owners are not covered by this program and will not be notified.

Dealer Parts Order Information
This program will be administered according to established procedures for the Ford Quality Renewal (FQR) program.

Refunds
It is appropriate to refund owner-paid repairs made before the date of the Owner Letter.

Questions?
Claims Information 1-800-423-8851
Other Recall Questions 1-800-325-5621

Attachments

Attachment I
^ Information Notice Form (for purchasers of new, unsold Villagers involved in this warranty coverage program)
^ Administrative Information
^ Refund Codes

Attachment II
^ Labor Allowances
^ Parts Ordering Information

Attachment III
^ Technical Information

Note:
(This technical procedure supersedes the procedure published in the Shop Manual and should be followed in the step-by-step sequence shown.)