Update: The original version of this story suggested that Ford was required to pay a lump sum of $165 million to the NHTSA. More specifically, Ford will pay an immediate cash penalty of $65 million with an additional $55 million "held in abeyance" subject to Ford's adherence to terms over the next three years. The company will invest the remaining $45 million in advanced data analytics, an information and document interface platform, and a new testing facility to test rearview camera components.
The headline and story have been updated to reflect that.
Ford Motor Company must pay up. The National Highway Traffic Safety Administration (NHTSA) has issued a $165 million civil penalty against the automaker for failing to recall vehicles with defective rearview cameras in accordance with federal recall requirements. While the figure is grabbing headlines—the second-largest ever next to Takata's $200-million fine—it's the other provisions that could cause more headaches for the automaker down the line.
NHTSA is requiring Ford to review its last three years of recalls "to ensure they have been properly scoped, and, if necessary, file new recalls," which isn’t something one of the most recalled brands of the last few years likely wants to hear. It issued the most recalls in 2023 and 2022—56 and 68, respectively—for millions of vehicles, jacking up recall and warranty costs.
The decree comes after the agency investigated the automaker for failing to promptly recall affected vehicles and provide accurate and complete recall information, opening its inquiry in August 2021. Ford will have to pay $65 million upfront, with $55 million of the penalty deferred. NHTSA will allow Ford to use the other $45 million for its performance obligations.
“We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continuously improving safety and compliance at Ford,” the automaker said in a statement to Automotive News.
Ford will also have to meet quarterly with NHTSA during the three-year consent order, which the agency can extend for a fourth. The Blue Oval will have to invest in a system that tracks specific vehicle components at the VIN level. It must also change its recall decision-making process, update its compliance policies and procedures, and speed up its recall decisions.
Source: NHTSA via Automotive News
