Ford 2014 Annual Report Download - page 29

Item 2. Properties (Continued)
ITEM 3. Legal Proceedings.
The litigation process is subject to many uncertainties, and the outcome of individual litigated matters is not
predictable with assurance. See Note 27 of the Notes to the Financial Statements for discussion of loss contingencies.
Following is a discussion of our significant pending legal proceedings:
PRODUCT LIABILITY MATTERS
We are a defendant in numerous actions in state and federal courts within and outside of the United States alleging
damages from injuries resulting from (or aggravated by) alleged defects in our vehicles. In many, no dollar amount of
damages is specified, or the specific amount alleged is the jurisdictional minimum. Our experience with litigation alleging
a specific amount of damages suggests that such amounts, on average, bear little relation to the actual amount of
damages, if any, that we will pay in resolving such matters.
In addition to pending actions, we assess the likelihood of incidents that likely have occurred but not yet been reported
to us; we also take into consideration specific matters that have been raised as claims but have not yet proceeded to
litigation. Individual product liability matters which, if resolved unfavorably to the Company, likely would involve a
significant cost would be described herein. Currently there are no such matters to report.
ASBESTOS MATTERS
Asbestos was used in some brakes, clutches, and other automotive components from the early 1900s. Along with
other vehicle manufacturers, we have been the target of asbestos litigation and, as a result, are a defendant in various
actions for injuries claimed to have resulted from alleged exposure to Ford parts and other products containing asbestos.
Plaintiffs in these personal injury cases allege various health problems as a result of asbestos exposure, either from
component parts found in older vehicles, insulation or other asbestos products in our facilities, or asbestos aboard our
former maritime fleet. We believe that we are being targeted more aggressively in asbestos suits because many
previously-targeted companies have filed for bankruptcy, or emerged from bankruptcy relieved of liability for such claims.
Most of the asbestos litigation we face involves individuals who claim to have worked on the brakes of our vehicles
over the years. We are prepared to defend these cases, and believe that the scientific evidence confirms our long-
standing position that there is no increased risk of asbestos-related disease as a result of exposure to the type of
asbestos formerly used in the brakes on our vehicles. The extent of our financial exposure to asbestos litigation remains
very difficult to estimate and could include both compensatory and punitive damage awards. The majority of our asbestos
cases do not specify a dollar amount for damages; in many of the other cases the dollar amount specified is the
jurisdictional minimum, and the vast majority of these cases involve multiple defendants, sometimes more than one
hundred. Many of these cases also involve multiple plaintiffs, and often we are unable to tell from the pleadings which
plaintiffs are making claims against us (as opposed to other defendants). Annual payout and defense costs may become
significant in the future.
ENVIRONMENTAL MATTERS
We have received notices under various federal and state environmental laws that we (along with others) are or may
be a potentially responsible party for the costs associated with remediating numerous hazardous substance storage,
recycling, or disposal sites in many states and, in some instances, for natural resource damages. We also may have
been a generator of hazardous substances at a number of other sites. The amount of any such costs or damages for
which we may be held responsible could be significant. At this time, we have no individual environmental legal
proceedings to which a governmental authority is a party and in which we believe there is the possibility of monetary
sanctions in excess of $100,000.
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• Getrag Ford Transmissions GmbH (“GFT”)
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