The former executive who helped create the original Ford Model S and the Model X will pay $3.5 million to a California family whose car was covered in paint by the automaker in a dispute over car repairs, according to a lawsuit filed Friday.
The settlement, filed by the California Family Car Restoration Association and the San Jose-based California Vehicle Repair Board, comes as the automaking giant faces growing pressure from a growing number of defect reports.
The suit says the $3 million is the equivalent of an average of about $7,000 in annual income for the families.
The suit says that the families are owed a total of about 2,300 vehicles, and that Ford was also required to pay for their damage.
The lawsuit filed by CARR says the settlement includes an undisclosed amount for the plaintiffs’ attorneys.
In October, the families sued Ford over a $6.3 million claim that it didn’t fix an engine defect on its new Model X SUV.
Ford says the defect was caused by an issue with the vehicle’s engine.