Ford Motor Company has agreed to pay up to $165 million in penalties after the National Highway Traffic Safety Administration (NHTSA) found the automaker failed to promptly address a recall and provide accurate recall information. The penalty marks the second-largest in NHTSA’s 54-year history, trailing only the $200 million fine imposed on Takata for defective airbag inflators.
The fine stems from a 2020 recall affecting over 600,000 Ford vehicles in the U.S., including popular models such as the F-150, Mustang, and Escape. Rearview cameras in these vehicles were prone to failure, displaying blank or distorted images. The issue impacted driver safety, although no accidents or injuries have been reported.
Penalty Breakdown and Compliance Measures
Under the consent order, Ford will pay $65 million upfront, allocate $45 million to safety enhancements, and defer $55 million. The allocated funds will support the development of advanced data analytics, an upgraded document system, and a new testing lab for vehicle components.
Ford also agreed to an independent monitor overseeing its recall processes for at least three years. This includes a comprehensive review of recalls issued over the past three years to verify compliance and address any gaps.
NHTSA Deputy Administrator Sophie Shulman emphasized the importance of timely and accurate recalls in ensuring public safety. “When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable,” she said.
Details of the Recall Investigation
NHTSA’s investigation revealed Ford violated several regulations under the Federal Motor Vehicle Safety Act. It cited delays in recalling affected vehicles, incomplete or inaccurate information provided to the agency, and missed quarterly reporting deadlines.
The recall, initially issued in September 2020, covered several 2020 models, including the F-Series pickups and the Lincoln Nautilus. Warranty claims for faulty cameras surfaced as early as February 2020, but it wasn’t until July that NHTSA raised concerns about consumer complaints. Ford’s recall expanded twice, adding over 24,000 vehicles in subsequent years.
Ford expressed its commitment to improving safety and compliance. “We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continuously improving safety,” a company spokesperson stated. The automaker plans to leverage advanced analytics and enhanced decision-making processes to detect safety defects more efficiently.
Despite this resolution, NHTSA continues to scrutinize Ford’s recall practices. Earlier this year, it opened an investigation into a repair for gasoline leaks in Ford SUVs, questioning whether the remedy sufficiently addressed safety concerns.
Ford acknowledged the lessons learned from its rearview camera recall and pledged ongoing improvements. “We look forward to working with NHTSA and the independent third party to implement further enhancements,” the company stated.
Featured Image courtesy of PETER NICHOLLS/REUTERS
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