Hundreds of customers have said their cars fitted with Ford's EcoBoost engines have failed after overheating, with some reporting their vehicles' 1.6-litre EcoBoost engines have brust into flames while they're driving.
The manufacturer told the BBC: "Ford has already made substantial contributions towards the cost of 1.0-litre repairs, but ongoing discussions with customers show that Ford needs to go further to ensure reasonable repair costs are covered.
"With any future cases, subject to being assessed and linked to potential 1.0-litre engine overheating, we will contribute 100% of the cost of repair at a Ford dealer.
"Furthermore, we will re-examine previous cases to ensure that this policy of a 100% contribution to the repair cost is applied consistently."
Many of the 1.0-litre drivers were told they had to pay for their own repairs, but now the company has said it will cover the cost - thousands of pounds in total - and refund those who have already paid.
Ford added it has reworked 96 percent of cars affected.