Ford faces $165 million penalty from NHTSA for recall delays and compliance failures, marking the second-largest fine in the agency’s history.
NHTSA Hits Ford with Major Penalty for Recall Failures
WASHINGTON, D.C. — The National Highway Traffic Safety Administration (NHTSA) announced a $165 million civil penalty against Ford Motor Company on Thursday for failing to comply with federal recall requirements. This significant penalty, the second-largest in the agency’s history, stems from Ford’s delayed recall of vehicles with defective rearview cameras and its failure to provide complete and accurate recall information as mandated by the National Traffic and Motor Vehicle Safety Act.
The consent order includes an upfront $65 million payment, with an additional $55 million deferred and $45 million allocated for performance obligations to improve Ford’s compliance practices. NHTSA Deputy Administrator Sophie Shulman emphasized the importance of prompt recalls, stating, “Timely and accurate recalls are critical to keeping everyone safe on our roads. When manufacturers fail to prioritize safety, NHTSA will hold them accountable.”
Investigation of Backup Cameras
The investigation, initiated on August 3, 2021, focused on Ford’s recall of over 620,000 vehicles across various models, including the Ford F-150, Explorer, Mustang, and Lincoln Corsair, among others. These vehicles were found to have faulty rearview cameras due to insufficient electrical conductivity within their printed circuit boards, leading to intermittent or inoperative performance. The defective cameras were supplied by Magna Electronics.
NHTSA Deputy Administrator Sophie Shulman emphasized the gravity of recall timeliness and accuracy in ensuring road safety. “When manufacturers fail to prioritize the safety of the American public, NHTSA will hold them accountable,” Shulman said.
Ford’s Compliance Overhaul Mandated by NHTSA
Under the terms of the three-year consent order, Ford must undertake a comprehensive overhaul of its safety compliance systems. The automaker is required to develop a robust safety data analytics infrastructure, build a multi-modal imaging lab focused on low-voltage electronics, and implement a vehicle identification number (VIN)-based traceability system. These measures aim to enhance recall decision-making speed and accuracy.
Ford must also review all recalls issued over the past three years to ensure completeness and issue new recalls if necessary. NHTSA will monitor Ford’s compliance through quarterly meetings and oversight by an independent third party, which will assess Ford’s adherence to the order and federal regulations.
Historical Context and Industry Impact
The $165 million fine ranks second only to the record $200 million civil penalty imposed on Takata for defective airbags. This significant enforcement action signals NHTSA’s intensified focus on automotive safety compliance and sets a precedent for other manufacturers.
Ford expressed its commitment to resolving the matter, with a spokesperson stating, “Wide-ranging enhancements are already underway with more to come, including advanced data analytics and a new in-house testing facility.”
The outcome of this case highlights the critical role of regulatory compliance in maintaining public safety and underscores the heavy penalties automakers face for lapses in recall execution.
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