Attachment V
Recall Newsletter Question and AnswerProgram Overview
Ford is extending to 7-years or 100,000-miles, whichever comes first, a warranty extension program or head gasket failure on 1994 and 1995 Cougar, Mustang, Thunderbird and Thunderbird Super Coupe vehicles equipped with a 3.8L engine. Owner notification by first-class mail is expected in mid-May.
Warranty Extension Details
1. Can you give me more details on the program?
This warranty extension covers head gasket failures on 3.8L engines in 1994 and 1995 Cougar, Mustang, Thunderbird and Thunderbird Super Coupe vehicles for 7-years or 100,000 miles, whichever comes first.
Any affected vehicle with less than 100,000 miles, regardless of years in service, is eligible for the program through November 1, 2000. After November 1, 2000 the 7-year limitation takes effect.
2. How many vehicles are affected?
A total of 294,434 vehicles are affected.
^ 165,731 1994 and 1995 model year Mustang vehicles built at the Dearborn Assembly plant from October 4, 1993 through August 11, 1995.
^ 128,703 1994 and 1995 model year Thunderbird and Cougar vehicles built at the Lorain Assembly plant from June 9, 1993 through July 31, 1995.
^ 4, 922 1994 and 1995 model year Thunderbird Super Coupe vehicles built at the Lorain Assembly plant from June 15, 1993 through July 20, 1995.
3. How will owners of these vehicles be informed of this warranty extension?
Owner notification by first-class mail is expected in mid-May. Owners can also contact their dealer to determine their vehicle's eligibility for the warranty extension.
4. How do customers get refunds if they have had the work done previously?
Upon receiving a customer notification letter from Ford, customers should bring their original paid receipt to their dealer for a full refund.
5. How long do customers have to apply for a refund?
For two years from the date of this program.
6. What if customers do not have receipts?
If a customer had the repair done at a Ford or Lincoln Mercury dealer, he/she may be able to obtain a copy of the receipt from the dealer records. Without a receipt, we cannot refund for a previous repair.
7. Will the customer be reimbursed for work performed at an independent garage?
Yes, customers will have to present receipts as stated in Question 5.
8. Will a free loaner vehicle be available while the vehicle is in the dealer for repairs?
Ford Motor Company will pay for a loaner or rental vehicle if a covered vehicle requires related damage engine repairs due to a head gasket leak (up to a maximum of five days).
Rental vehicles are not available for vehicles that are at the dealer for head gasket replacement only. If the rental period is likely to exceed five days, contact the Recall Hotline at 1-800-325-5621.
9. But what about vehicles with 3.8L engines built before 1994? We have reports of failures with these vehicles also. Why aren't you helping these customers?
While we are sorry when any Ford customer has had a problem with our vehicles, these two years of rear-wheel drive vehicles are showing a higher rate of head gasket failure when compared to previous model year rear-wheel drive vehicles. That is why we have extended the warranty on these vehicles.
10. Are you considering extending this warranty to cover vehicles built before or after 1994 and 1995?
No. Our data indicates that this rear-wheel drive warranty extension provides significant coverage to rear-wheel drive vehicle owners most likely to have a head gasket concern.
11. What do you tell owners who are left out of this warranty extension? Is there any hope of relief?
While we regret anytime a customer has an issue with one of our products, we are targeting those rear-wheel drive vehicles with the 3.8L engine most likely to be affected by this concern. Should a vehicle owner have a head gasket failure outside of this extended warranty, we would, as always, review each situation on its individual merits, on a case-by-case basis. The vehicle owner can call the Ford Customer Assistance Center at 1-800-392-3673 to report their concern.
12. Why are these rear-wheel drive vehicles having higher failures, when compared to previous rear-wheel drive model years?
There were engineering changes for this engine for the 1994 model year: Different head bolts were used, head bolt rundown specifications were changed, and there was a change to CFC-free air conditioning refrigerant.
13. What about rear-wheel drive vehicles produced after these dates?
For 1996, we began heat treating the cylinder heads and using a higher head bolt load. Also, we began using a gasket with a heavier bore grommet, and rebalanced face and bore grommet loads. In 1997, further enhancements were made by using a multi-layer steel head gasket evaluated with new testing technology not available when the 1994 and 1995 model year head gaskets were developed.
14. Are Fleets eligible for this program?
Yes, fleets are eligible for this program. Any inquiries concerning fleet coverage for this program should be referred to the Fleet Hotline at 1-800-343-5338.
Related Damage
15. What if there is other damage caused by this concern?
All repairs identified as related damage MUST be completed and submitted for payment within the Owner Notification Program time limit. ACES II will not accept claims for repairs performed beyond the limit for payment. Refer to Owner Notification Program 00M10 for details.
16. What if a related damage was done outside the program limits?
The dealer must contact the Warranty Action Team (WAT) at 1-800-423-8851 for consideration of ci manual pay exception. Exceptions will be considered on an individual, case-by-case basis.
The Head Gasket Failure
17. What is the concern, which resulted in this warranty extension?
Premature failure of the head gasket(s) may occur on affected vehicles and may result in engine overheating and possible engine failure.
18. What is the fix?
Head gaskets, head bolts and manifold gaskets will be replaced. In addition, dealers will provide a complete cooling system flush, and an oil and oil filter change, free of charge.
19. Is the rear-wheel drive service head gasket different than the one it replaces? How?
Yes. The service gasket has higher-density carbon in gasket facing, and heavier bore grommets.
20. Is the rear-wheel drive head gasket different that the front-wheel drive head gasket?
Yes. The coolant passages are different. These gaskets are not interchangeable.
21. Can dealers send the head out for "resurfacing"?
Yes. If necessary, cylinders head may be resurfaced to complete the repair.
Marketing Program Information
22. The owner letter refers to a special marketing program. How does that work?
For a limited time, instead of accepting a cash refund for a previously paid head gasket repair, a customer may choose to take a $4,000 Consumer Focus Certificate towards the purchase or lease of a new Ford, Mercury or Lincoln product.
Upon receipt of the certificate, the customer has up to six months to use the certificate.
23. Customers coming in for first time repair are not eligible for any certificate offer. Is this correct?
Yes. Customers with a vehicle that is experiencing the condition for the first time, are entitled only to a repair.
24. Vehicle is serviced under 00M10. The vehicle is brought back to the dealership three months later requiring an engine replacement. Is the customer entitled to the CFC or the Extended Parts Delay Certificate?
If an engine replacement is necessary, and an engine is not available within (5) business days, the customer will qualify for a $3,000 Extended Parts Delay (EPD) certificate. The customer will receive average NADA blue book value as indicated in the dealer letter dated April 20, 2000. For further information, dealers are referred to their Regional Customer Service Manager (CSM).
25. Where can dealers obtain more information related to the marketing program for 00M10?
Dealers can obtain specific information related to the marketing program supporting Owner Notification Program 00M10 through the following resources:
^ Via the web at QCDealer.com, FDealer.com or LMDealer.com
^ Their Regional Customer Service Manager (CSM)
^ Consumer Focus Hotline (for all questions regarding CFC and Extended Parts Delay process): 1-877-296-9427
^ Recall Hotline 1-800-325-5621
^ Customer Inquiries (refer to the Ford Customer Assistance Center): 1-800-392-3673