Ford agrees to pay second-largest civil penalty in NHTSA history
Ford Motor Co. will pay the second-largest civil penalty in the National Highway Traffic Safety Administration’s history after the Dearborn automaker failed to comply with federal recall requirements, according to a new release from the agency.
The three-year consent order agreed to by Ford and the NHTSA includes a civil penalty of up to $165 million, which is exceeded only by the Takata air bag consent order in the regulatory agency’s 54-year history. An investigation that began in 2021 found the company didn’t recall vehicles with defective rearview cameras in a timely manner or provide accurate and complete recall information as required by the National Traffic and Motor Vehicle Safety Act.
The recall affected more than 600,000 vehicles and included various models including certain 2020 model year Escape, Explorer, F-150, Mustang and Transit vehicles. When the vehicle is in reverse, the camera could display a blank or distorted image. An initial recall took place in September 2020 and was later expanded. There were no fatalities or injuries reported in connection with the issue.
The consent order includes an upfront payment of $65 million. An additional $55 million will be held subject to Ford’s adherence to the terms of the consent order. Ford will use a final $45 million to invest in data analytics, an imaging test lab that focuses on low-voltage electronics, a platform to access information and documents for safety investigations and a system to trace components at the vehicle identification number level.
Ford also must review all recalls it has issued over the last three years to ensure their proper scope and file new recalls if needed. The company also will update its written policies for Vehicle Safety Act compliance and address ways to improve information sharing and speed up the recall process.
“We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continuously improving safety and compliance at Ford,” spokesperson Maria Buczkowski said in a statement. “Wide-ranging enhancements are already underway with more to come, including advanced data analytics, a new in-house testing facility, among other capabilities.”
As part of the order, an independent third party will oversee and make recommendations regarding performance obligations and assess the company’s compliance with the consent order and law. NHTSA has the option to extend the order for a fourth year. The parties will meet quarterly.
“Timely and accurate recalls are critical to keeping everyone safe on our roads,” Sophie Shulman, NHTSA deputy administrator, said in a statement. “NHTSA is committed to ensuring manufacturers comply with the laws designed to keep our roads safe. When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable.”