Thousands of Ford drivers across Canada could soon be eligible for compensation after a national class action lawsuit was filed against Ford Motor Company and Ford Canada over alleged defects in hybrid vehicle batteries. The lawsuit, launched by Charney Lawyers on May 6, 2025, targets plug-in hybrid electric vehicles (PHEVs) and plug-in electric vehicles (EVs) that may pose serious operational and safety risks due to faulty battery systems.
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The Allegations: Defective Batteries and Safety Risks
According to the proposed class action, certain Ford PHEV models are equipped with lithium-ion batteries that are allegedly prone to microcracks — defects that can lead to short-circuiting and fire hazards. In some cases, the issue renders the vehicle’s electric motor useless, forcing owners to rely entirely on gasoline power — negating the benefits of a hybrid vehicle.
This problem was serious enough to prompt a nationwide recall. On February 11, 2025, Transport Canada issued a safety recall notice citing a risk of battery overheating and potential vehicle fires — even when parked and turned off.
Despite the recall, many Ford owners were left without immediate repairs or replacement batteries. The class action claims this left drivers unable to use the electric functionality of their PHEVs, undermining their primary purpose of reducing fuel consumption and emissions.
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The Lawsuit: Negligence and Warranty Breach Alleged
The plaintiff, a Toronto resident, initiated legal proceedings after she and her husband purchased a used 2021 Ford Escape PHEV for $35,000 in April 2024. They made the investment specifically to cut down on gasoline costs. Instead, due to the unresolved battery issue, the couple found themselves forced to rely on the gas engine for commuting.
The lawsuit accuses Ford of the following:
- Negligence in the manufacturing and design of defective batteries
- Failure to disclose known defects before the vehicles were sold or leased
- Breach of warranty and misrepresentation in advertising plug-in functionality
It further alleges Ford was aware of the defects but still authorized the sale and lease of affected vehicles through its dealer network.
Vehicles Affected by the Class Action
The legal action specifically targets these Ford and Lincoln plug-in models:
- Ford Escape PHEV (model years 2020 to present)
- Lincoln Corsair PHEV (model years 2020 to present)
If you own or lease one of these models in Canada, you may be eligible to join the lawsuit.
Ford Canada’s Response
As of now, Ford Canada has not issued a public statement in response to the lawsuit. However, the company has acknowledged the recall and previously offered some affected drivers free repairs or battery replacements — although many owners report delays in availability and service.
Ford’s official recall site states that vehicle owners were notified and that repair solutions are in development or being deployed.
Joining the Class Action: What You Need to Do
Charney Lawyers is currently gathering data from potentially affected individuals. Here’s what you should know if you think you qualify:
Eligibility Criteria
- You owned or leased a Ford Escape PHEV or Lincoln Corsair PHEV from model years 2020 to present
- You reside in Canada and purchased or leased the vehicle within the country
- You have experienced battery-related issues that impacted your vehicle’s performance or safety
How to Register
To participate, eligible individuals must:
- Submit a registration form to Charney Lawyers
- Provide details such as the vehicle model, purchase or lease date, and purchase/lease price
- Describe performance issues experienced, such as loss of electric power or inability to charge
- Indicate whether the vehicle has been taken in for repairs related to the battery defect
Registering does not require any payment and will ensure you receive updates about court proceedings, certification, and potential compensation.
Why This Matters for Canadian Drivers
This case is part of a growing wave of legal action against auto manufacturers facing allegations of design flaws in electric and hybrid vehicles. As the shift to electrification accelerates, vehicle reliability — especially battery safety — is under increasing scrutiny.
If the lawsuit is certified and successful, affected Ford owners could be compensated for:
- Repair costs
- Lost use of electric functionality
- Additional gasoline expenses
- Depreciation in vehicle value
Bottom Line: Don’t Ignore the Warning Signs
If you drive a Ford Escape PHEV or Lincoln Corsair PHEV and have encountered battery issues, you could be entitled to compensation. With safety and consumer protection at stake, this class action could set a precedent for how automakers handle EV-related defects going forward.