Ford Motor Company has agreed to pay a penalty of up to $165 million to the U.S. government for delaying a recall and providing inaccurate recall information. This penalty is the second-largest in the National Highway Traffic Safety Administration’s history, behind only Takata’s fine for faulty airbag inflators.
The NHTSA stated that Ford was slow to recall vehicles with faulty rearview cameras and failed to provide complete information to the agency, as required by the Federal Motor Vehicle Safety Act. As part of the consent order with the agency, Ford will pay $65 million upfront, spend $45 million to comply with the law, and defer $55 million.
Additionally, an independent third party will oversee Ford’s recall performance obligations for at least three years, and the company must review all recalls from the past three years to ensure the proper number of vehicles were recalled. If necessary, new recalls must be filed. Ford will also need to improve its recall decision-making process and invest in technology to trace parts by vehicle identification numbers.
The $45 million investment will go towards advanced data analytics, a new document system, and a new testing lab. Ford expressed its commitment to continuously improving safety and resolving the matter with the NHTSA.
The problematic recall involved over 620,000 vehicles in the U.S. and over 700,000 in North America for rear-view cameras that could fail on certain 2020 models. The recall was not initiated until September 2020, despite Ford being aware of the issue months earlier. Subsequent recalls in 2022 and 2024 added more vehicles to the initial recall.
Despite the penalty, Ford maintains that it is dedicated to compliance with the law and improving its recall processes. The company faced criticism earlier this year for a recall repair that did not address gasoline leaks in certain SUV models, raising safety concerns. Ford has stated that it is committed to working with NHTSA and implementing enhancements to prevent future issues.
In conclusion, Ford’s agreement to pay the penalty reflects the importance of timely and accurate recalls to ensure public safety on the roads. The company’s commitment to improving safety measures and working with regulatory agencies is crucial in maintaining consumer trust and upholding industry standards.
