Ford has agreed to fix, buy back or replace up to 10,500 cars, as deemed by an independent auditor.
The models affected include the Ford Fiesta and Focus small cars and EcoSport SUVs made between 2011 and 2015 equipped with the six-speed “Powershift” transmission.
The gearbox is intended to be as smooth as a regular automatic but Ford received widespread complaints about shuddering and delays.
Complaints began to surface in 2015 and 2016 however, Ford now admits it initially misdiagnosed the problem.
“We took too long to identify the issues and we acknowledge that PowerShift customers did not have complaints handled appropriately between May 2015 and February 2016,” said Graeme Whickman, President & CEO Ford Motor Company, Australia.