Ford Motor Company will pay $165 million in penalties following a National Highway Traffic Safety Administration (NHTSA) investigation into delayed recalls and inaccurate reporting of defective rearview cameras, the agency announced -- the second-largest civil penalty in the agency’s 54-year history.
“Timely and accurate recalls are critical to keeping everyone safe on our roads,” said NHTSA Deputy Administrator Sophie Shulman. “When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable.”
The NHTSA’s consent order requires Ford to make an upfront payment of $65 million, with an additional $55 million deferred and $45 million allocated for performance improvements.
The penalty is surpassed only by the Takata airbag settlement.
As part of the agreement, Ford will overhaul its safety compliance processes under the oversight of an independent third party. This includes developing a safety data analytics infrastructure, implementing a VIN-based traceability system, and creating a multi-modal imaging test lab focused on low-voltage electronics.
Ford will also review all recalls issued in the past three years to ensure proper scope and compliance. If necessary, the company must initiate new recalls to address any overlooked defects. In addition, Ford is tasked with improving information-sharing across disciplines, enhancing its ability to analyze data for safety defects, and expediting recall decisions.
The three-year consent order may be extended by NHTSA for a fourth year if necessary. During this period, Ford must meet quarterly with NHTSA, maintain accurate safety evaluation records, and ensure the functionality of its VIN lookup tool for consumers.
