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The Ecoboost petrol engine fitted to these cars has been known to give problems, usually in the form of cylinder head faults and oil leaks as a result. The open-deck cylinder block design is often quoted as the cause of these failures, and it’s not inconceivable that such a failure could cause problems with the cylinders or pistons over time.
However, no modern car can be considered acceptable if the engine fails at such a low mileage. Ford is unlikely to consider this a warranty job given the age of the vehicle, but it would be worth talking to Ford’s customer service division to see if there’s any help on offer.
For the record, the cars most affected by the cylinder head failure problem were built between 2012 and 2014, but even if you bought your car in 2015, it could have been made in 2014 and might be one of the affected ones.
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I’d agree that the problem is likely to be something to do with the on-board computer(s) that control the powertrain and other functions. If you’re certain that the engine is not running hot when it claims to be, the cause could be as simple as the sensor is faulty, but it could also indicate a computer problem. The same goes for the power-steering, although an electrical circuit that constantly blows its fuse suggests a short-circuit somewhere in the wiring or connectors.
The code P1299 indicates that the car thinks the cylinder head temperature is too high, while P0118 suggests a problem with the sensor that monitors changes in the engine’s coolant temperature. Either way, this is a brand-new car, so it will be covered by the factory warranty. Make it Ford’s problem, not yours.
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This crops us frequently as a dispute between car owners and dealerships and it's all because of one thing: Extended warranties are generally not worth the paper they're printed on. They're designed to relieve car buyers of more money, thinking they'll be covered if the worst happens. Usually, the warranty is carefully written to avoid paying out on the things most likely to go wrong. Never has 'read the fine print' been so important.
Consider that the warranty your purchased only covers the first $3500 of an engine replacement. Where on earth can an engine be replaced for that sort of money? It's a clear case of the fine print giving the warranty provider a convenient escape clause. Don't forget, this extended warranty is not a Ford factory warranty, it's a third party deal that car-dealers love because they get a kick-back from the warranty company every time a car buyer signs on that dotted line. Dealers also love these warranties because it forces owners into over-servicing their cars. Does it not seem strange that the car designed and engineered by Ford to have a 12-monthly service interval suddenly needs a six-monthly service as part of the warranty conditions?
As far as the replacement engine goes, be very careful about what you're being offered. If the engine is, indeed, a reconditioned engine, it doesn't really matter how many kilometres it has already done because reconditioned means it has been fully rebuilt with new parts. If, however, it's a second-hand engine plucked from a wrecked Kuga, then I would argue that an engine with the same mileage as the one in your car should be fitted. But I'll guarantee you there's some fine print in that warranty that makes me wrong about that, too.
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