Investigations into Ford's Recalls

By David Shepardson

WASHINGTON (Reuters) – The National Highway Traffic Safety Administration (NHTSA) announced on Monday that it has launched two new investigations into Ford (NYSE:F) regarding its recent recalls, marking the latest scrutiny from U.S. regulators of the second-largest automaker in the country.

Last week, Ford settled a civil penalty of $165 million after an NHTSA investigation concluded that the company failed to recall vehicles with defective rearview cameras promptly.

New Investigations

On Monday, NHTSA opened an investigation focused on:
1. Seat Belt Issues: Whether Ford should recall 112,000 Expedition SUVs concerning seat belt problems.
2. Power and Electrical Failures: Evaluating the adequacy of Ford’s recall of 456,000 SUVs addressing loss of power and electrical system failures.

NHTSA received three complaints alleging unintended deployment of the seat belt retractor pretensioner, which involved a loud noise, followed by the seat belt tightening and locking in place. This investigation follows a February recall by Ford for 77,000 Expedition and Lincoln Navigator SUVs regarding the same issue.

Adequacy of Previous Recalls

NHTSA is also assessing whether Ford’s April recall of approximately 456,000 Bronco Sport and Ford Maverick vehicles, related to power loss due to sudden degradation of the 12-volt battery, sufficiently addressed the issues. The recall's solution involved a series of software updates aimed to enhance the detection of the 12-volt battery's state of charge; however, NHTSA has received 15 reports indicating power loss in Bronco Sport vehicles despite the updates.

Ford has stated it is collaborating with NHTSA to facilitate both investigations.

Settlement Terms

As part of the terms of the settlement with NHTSA from last week, Ford is required to conduct a comprehensive review of all recalls submitted over the last three years and file new recalls if deemed necessary.

NHTSA noted that Ford had provided incorrect or incomplete information, failed to submit timely quarterly reports on other recalls, and did not fully comply with making vehicle recall information publicly available. Ford has expressed disagreement with NHTSA's evaluation.