Module called culprit
The problem stems from a small part called the "thick-film ignition module," which regulates electricity running to the spark plugs. Plaintiff's allege Ford positioned the module too close to the engine block. They say the heat radiating from the engine causes the devices to fail and stall the vehicles, sometimes on a busy highway or on railroad crossings.
Ballachey -- who said Ford was living in an "Alice in Wonderland" dreamland for denying ignition switches were defective -- found last year that Ford was warned by an engineer that high temperatures would cause the device to fail and stall the engine.
Internal Ford documents unearthed during the case show that the company confirmed the problem in internal studies. Moving the module to a cooler spot would have cost an an extra $4 per vehicle, the records show.
"Ford's got a lot of amends to make because of the cost-cutting measures it has taken historically," said Ralph Hoar, director of Safetyforum.com, which works for plaintiffs' attorneys suing the auto industry. "That's what is coming back to bite them on the butt."
The models affected include Ford's Taurus, LTD, Ranger, Bronco, Mustang and Escort, according to Ford. Cars from Ford's Lincoln and Mercury divisions that had the device include the Town Car, Sable and Grand Marquis.
The agreement supercedes Ballachey's recall of some 2 million vehicles on California's roads, the first such recall by a U.S. judge.
Ford has argued that the judge had overstepped his authority, saying only the National Highway Traffic Safety Administration could order a recall. The company had threatened to appeal his recall order.