Ford Motor Agrees to $165 Million Civil Penalty

By David Shepardson

WASHINGTON (Reuters) – The National Highway Traffic Safety Administration (NHTSA) announced on Thursday that Ford Motor Company has agreed to a civil penalty of $165 million after an investigation revealed the automaker's failure to timely recall vehicles with defective rearview cameras.

Under a consent order lasting at least three years, Ford, the No. 2 U.S. automaker, will pay $65 million in cash, spend $45 million on advanced data analytics and a new testing facility, with an additional $55 million held in abeyance contingent upon compliance.

The NHTSA opened an investigation in August 2021 after Ford recalled 620,246 vehicles in 2020 due to rear camera issues, assessing whether the recalls occurred promptly. Ford expanded the recall in March 2022 by adding approximately 24,000 vehicles.

NHTSA stated that Ford provided inaccurate or incomplete information, failed to submit timely quarterly reports for other recalls, and did not fully comply with public recall information availability. Ford disagrees with this assessment but expressed satisfaction in resolving the investigation and affirmed its commitment to improving safety and compliance.

As part of the agreement, Ford must thoroughly review all recalls filed in the last three years and issue new recalls if necessary. An independent third party will oversee all performance obligations, assessing Ford’s compliance with the consent order.

Ford will hold quarterly meetings with the NHTSA and develop safety data analytics systems. Additionally, Ford is required to construct an imaging test lab for low-voltage electronics and invest in a vehicle identification number-based traceability system to monitor components on an individual vehicle basis.

Lastly, NHTSA mandates that Ford review and enhance its recall decision-making process, ensuring it can analyze data to identify safety-related defects and non-compliances effectively.