FORD RECALLS VEHICLES TO CORRECT BATTERY, FUEL-TANK PROBLEMS
November 18, 2005

Ford Motor Co. recalled about 220,000 vehicles from the 2005 model year amid concerns that a battery cable was rubbing against the vehicle frame, potentially causing fires, and that a fuel-tank strap on other models could separate. The recall linked to the cable involves more than 98,000 Ford Crown Victoria, Lincoln Town Car and Mercury Grand Marquis sedans. Ford said in a letter to the National Highway Traffic Safety Administration that it has received four reports of fires. Ford spokeswoman Kristen Kinley said chafing of the cable caused the exposure of wires to the vehicle frame, causing the frame to become electrified in some cases and carry the potential for heat damage or fires. The Associated Press, 11/17/2005

Consumer advocates are attacking an out-of-court settlement that State Farm Insurance Cos. obtained from the attorneys general of 49 states over thousands of rebuilt wrecks that it admittedly put back on the roads over the last decade without disclosing that they had been totaled in accidents. The country's biggest motor vehicle insurer first approached Iowa's attorney general in November 2003 after discovering irregularities in auto titles. State Farm signed a settlement agreement last January with the attorneys general of 49 of 50 states and the District of Columbia. In September, the attorneys general began sending out settlement notices to 32,000 vehicle owners offering compensation of roughly 25% book value on the rebuilt wrecks that owners unknowingly bought as used cars. In return, the owners would release their claims against State Farm. Consumers who do not elect to join the settlement may pursue individual causes of action against the insurer in court. Peter Geier, The National Law Journal, 11/14/2005.