Ford Motor of Canada is also

facing an aggressive class action

lawsuit, with California accusing it of violating

antitrust regulations that restrict

the export of low-priced Canadian

cars into the United States.

The California Court of Appeal

unanimously ruled that the plaintiff

consumers provided sufficient evidence.

The lawsuit stems from the auto industry's

efforts to reduce the number of vehicles produced

around 1990 and 2000 and then entering the US

auto market through the "gray market."

Plaintiffs' lawyer Michael Christian

said the lawsuit hopes to compensate

California users who bought new cars

between 2000 and 2003 for the difference they paid.

However, the court refused to reinstate

the charges against Ford.

The charges against US and Canadian automakers,

the Canadian Automobile Dealers

Association and the National

Automobile Dealers Association

have been adjudicated,

handled or dropped in bankruptcy.

The lawsuit alleges that Canadian

imported cars are cheaper than similar

U.S.-made cars,

and that a 2000 F350 Crewcab 4x4 DRW Lariat

imported from Canada can

cost $8,265 less than a U.S. version.

The lawsuit accuses the automaker

of blacklisting export agents,

modifying franchise agreements to

prohibit foreign sales, imposing

restrictions on vehicle allocations,

forcibly terminating allocations,

invalidating authorizations and refusing

to inform export agents of recalls.

The appeals board said the plaintiffs

provided important evidence,

including phone calls and private meeting

records between the manufacturer and Ford

Canada's general counsel.

Matt Drennan-Scace,

a spokesman for Ford Canada,

said he would not comment on ongoing litigation.