Legal Proceedings.
−Removed: PRODUCT LIABILITY MATTERS
−Removed: Ford (as previously reported on page 29 of our 2022 Form 10-K Report).
−Removed: Plaintiffs in this product liability action pending in Georgia state court allege that the roof of a 2002 Ford F-250 involved in a rollover accident was defectively designed.
−Removed: During the first trial in 2018, the judge declared a mistrial, ruled that Ford’s attorneys had violated pre-trial rulings while presenting evidence, and sanctioned Ford by prohibiting Ford from introducing any evidence at the second trial to show that the roof design of the F-250 was not defective.
−Removed: During the second trial in August 2022, a jury found that Pep Boys (the party that sold the tires on the vehicle involved in the rollover accident) was responsible for 30% of the damages, and Ford, as a direct result of the sanctions order prohibiting Ford from presenting its defense, was responsible for 70% of the damages, resulting in $16.8 million in damages being apportioned to Ford.
−Removed: The jury subsequently awarded punitive damages against Ford in the amount of $1.7 billion.
−Removed: Ford filed post-trial motions seeking a new trial, and on September 14, 2023, the trial court denied Ford’s post-trial motions.
−Removed: On October 13, 2023, Ford filed a notice of appeal with the Georgia Court of Appeals.
−Removed: We believe the law supports our position that Ford is entitled to a new trial with the right to present evidence in its defense.
ENVIRONMENTAL MATTERS
−Removed: Any legal proceeding arising under any federal, state, or local provisions that have been enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment, in which (i) a governmental authority is a party, and (ii) we believe there is the possibility of monetary sanctions (exclusive of interest and costs) in excess of $1,000,000 is described on page 30 of our 2022 Form 10-K Report and page 64 of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.
+Added: Any legal proceeding arising under any federal, state, or local provisions that have been enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment, in which (i) a governmental authority is a party, and (ii) we believe there is the possibility of monetary sanctions (exclusive of interest and costs) in excess of $1,000,000 is described on page 35 of our 2023 Form 10-K Report.
OTHER MATTERS
−Removed: Brazilian Tax Matters (as previously reported on page 31 of our 2022 Form 10-K Report, page 64 of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and page 65 of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023).
+Added: Brazilian Tax Matters (as previously reported on page 35 of our 2023 Form 10-K Report).
One Brazilian state (São Paulo) and the Brazilian federal tax authority currently have outstanding substantial tax assessments against Ford Motor Company Brasil Ltda.
9 unchanged sentences
Although the ultimate resolution of these matters may take many years, we consider our overall risk of loss to be remote.
+Added: Transit Connect Customs Penalty Notice (as previously reported on page 36 of our 2023 Form 10-K Report) .
+Added: Customs and Border Protection (“CBP”) ruled in 2013 that Transit Connects imported as passenger wagons and later converted into cargo vans are subject to the 25% duty applicable to cargo vehicles, rather than the 2.5% duty applicable to passenger vehicles.
+Added: We filed a challenge in the U.S.
+Added: Court of International Trade (“CIT”), and CIT ruled in our favor in 2017.
+Added: CBP subsequently filed a notice of appeal to the U.S.
+Added: Court of Appeals for the Federal Circuit, which ruled in favor of CBP.
+Added: Following the U.S.
+Added: Supreme Court’s denial of our petition for a writ of certiorari in 2020, we paid the increased duties for certain prior imports, plus interest, and disclosed that CBP might assert a claim for penalties.
+Added: Subsequently, CBP issued a penalty notice to us dated July 22, 2021, and on November 18, 2021, CBP assessed against us a monetary penalty of $1.3 billion and additional duties of $181 million, plus interest.
+Added: On March 11, 2024, Ford entered into a settlement agreement for this matter, which included a payment of $365 million to the United States.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.