• NHTSA issues second-largest fine in its history for Ford's failure to comply with federal recall requirements.
Ford has agreed to pay a fine of up to $165 million, the second-largest civil penalty ever imposed by the U.S. National Highway Traffic Safety Administration (NHTSA).
The fine stems from Ford's failure to meet recall deadlines for vehicles equipped with defective rear-view cameras. NHTSA found that the automaker failed to act promptly and to provide complete and accurate information about the necessary recalls.
Faulty Rearview Camera
NHTSA, the U.S. federal highway safety agency, stressed the importance of prompt and accurate recalls to ensure the safety of drivers and passengers. Sophie Shulman, NHTSA's deputy administrator, said in a November 14 statement:
"Timely and accurate recalls are essential to keeping everyone safe on our roads. NHTSA is committed to ensuring that manufacturers comply with laws designed to protect the public. When manufacturers fail to prioritize the safety of the American public and meet their legal obligations, NHTSA will hold them accountable."
Delayed Recall and Large Fines
The size of the fine reflects the seriousness of Ford's violation, as it is the second-largest penalty ever imposed by NHTSA. The amount is spread over three years in a consent order, including an immediate payment of 65 million.
An additional 55 million will be suspended to ensure that Ford complies with the terms of the agreement.
The remaining 45 million can be used by Ford for safety-related improvements.
Significant improvements to ensure compliance
As part of the agreement, Ford must implement a number of measures to improve its safety compliance. These include the development of a safety data analytics infrastructure, a document management platform and a multimodal test lab focused on low-voltage electronics.
In addition, Ford will invest in a vehicle identification number (VIN)-based component traceability system.
Review all recalls
Ford must also review all recalls conducted over the past three years to ensure they were sufficiently complete. If necessary, the company will issue new recalls to correct previous errors. A quarterly follow-up with NHTSA officials will also be established to ensure the proper implementation of the agreement.
Recall Leader
Ford continues to lead the U.S. auto industry in recalls. For the past three years, Ford has outpaced its competitors in the number of vehicles recalled, and this year it is again in the lead, tied with Stellantis, with a total of 58 recalls.
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