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    Ford agrees to pay the second largest civil penalty in NHTSA history

    Online Niel Posted on

    Ford Motor Co. will pay the second-largest civil penalty in National Highway Traffic Safety Administration history after the Dearborn automaker failed to comply with federal recall requirements, according to a new release from the agency.

    The three year old consent order The settlement agreed by Ford and NHTSA includes a civil penalty of up to $165 million, which is exceeded only by the Takata airbag award in the regulatory agency’s 54-year history. A investigate that began in 2021 found that the company failed to timely recall vehicles with defective rearview cameras and failed to provide accurate and complete recall information as required by the National Motor Vehicle and Traffic Safety Act.

    The recall affected more than 600,000 vehicles and included various models, including certain Escape, Explorer, F-150, Mustang and Transit vehicles from the 2020 model year. When the vehicle is in reverse, the camera may display a blank or distorted image. An initial recall occurred in September 2020 and was later expanded. No casualties or injuries have been reported in connection with this issue.

    The consent order includes an upfront payment of $65 million. In addition, $55 million will be held subject to Ford’s compliance with the terms of the consent order. Ford will use the final $45 million to invest in data analytics, an imaging test lab focused on low-voltage electronics, an information and document access platform for safety investigations, and a component tracking system at the vehicle identification number level.

    Ford must also review all recalls it has issued in the past three years to ensure they are appropriate and, if necessary, file new recalls. The company will also update its written policies for compliance with the Vehicle Safety Act and address ways to improve information sharing and expedite the recall process.

    “We appreciate the opportunity to resolve this matter with NHTSA and remain committed to the continued improvement of safety and compliance at Ford,” spokeswoman Maria Buczkowski said in a statement. “Extensive improvements are already underway and more will follow, including advanced data analytics, a new in-house test facility, among other capabilities.”

    As part of the order, an independent third party will oversee and make recommendations regarding the performance obligations and evaluate the company’s compliance with the consent order and the 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,” NHTSA Deputy Administrator Sophie Shulman said in a statement. “NHTSA is committed to making sure manufacturers follow laws designed to keep the roads safe. When manufacturers fail to prioritize the safety of the American public and fail to meet their obligations under federal law, NHTSA will hold them accountable.”

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