Ford Motor Co. has agreed to pay a penalty of up to $165 million to the U.S. government for delays in issuing a recall and providing accurate recall information. This penalty, announced by the National Highway Traffic Safety Administration (NHTSA), is the second-largest in the agency's history, with only Takata's fine for faulty air bag inflators being higher.
The NHTSA found that Ford was slow to recall vehicles equipped with defective rearview cameras and failed to provide complete information as required by the Federal Motor Vehicle Safety Act. As part of a consent order with the agency, Ford will pay $65 million in penalties and commit $45 million to ensure compliance with safety regulations. An additional $55 million will be deferred.
NHTSA Deputy Administrator Sophie Shulman emphasized the importance of timely and accurate recalls in ensuring road safety. The agency will hold manufacturers accountable for prioritizing public safety and meeting legal obligations.
Under the terms of the consent order, an independent third party will monitor Ford's recall performance for a minimum of three years. Ford is also required to review all recalls from the past three years to verify the adequacy of the recall scope and issue new recalls if necessary.
Furthermore, Ford must reassess and enhance its recall decision-making process to improve defect identification in its vehicles. The company plans to invest the $45 million penalty in advanced data analytics, a new document system, and a testing laboratory.
Ford expressed its commitment to enhancing safety measures and appreciated the opportunity to resolve the matter with NHTSA. The automaker aims to continuously improve safety standards in its vehicles.
