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Ford agrees to pay up to 5 million in fines to US government for moving too slowly on recall
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Ford agrees to pay up to $165 million in fines to US government for moving too slowly on recall

DETROIT (AP) — Ford Motor Co. will pay the US government a penalty of up to $165 million for proceeding too slowly with a recall and failing to provide accurate information about the recall.

The National Highway Traffic Safety Administration says in a statement Thursday that the civil penalty is the second largest in its 54-year history. Only the fine Takata paid for the defective airbag inflators was higher.

The agency says Ford was too slow to recall vehicles with defective rearview cameras and failed to provide the agency with complete information, which is required by the federal Motor Vehicle Safety Act.

Ford agreed to a consent order with the agency that includes a $65 million payment and $45 million in costs to comply with the law. Another $55 million will be deferred.

“Timely and accurate recalls are critical to keeping everyone safe on our roads,” NHTSA Deputy Administrator Sophie Shulman said in the statement. “When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable.”

Under the order, an independent third party will oversee the automaker’s recall performance obligations for at least three years.

Ford must also review all recalls from the past three years to ensure enough vehicles have been recalled and file new recalls if necessary.

The company also needs to review and change its recall decision-making process, improving the way it analyzes data to find safety defects in its vehicles.

Ford says it will invest the $45 million in advanced data analytics, a new document system and a new testing lab.

“We appreciate the opportunity to resolve this issue with NHTSA and remain committed to continuous safety improvement,” Ford said in a statement.