Ford fined up to $165 million over delayed vehicle recalls
CNN
—
Ford is being fined up to $165 million after the National Highway Traffic Safety Administration ruled the company moved too slowly in recalling cars with faulty rearview cameras.
The ruling comes three years after the NHTSA opened an investigation to determine whether Ford waited too long to issue its 2020 recall of 600,000 vehicles, which was related to defective rearview cameras. Drivers began reporting that year that the cameras sometimes showed a blank screen.
The NHTSA said Ford violated federal regulations that require carmakers to immediately notify the agency of any vehicle defects, and to submit a quarterly report on the progress of the recall. The agency's consent order says Ford failed to issue a "timely recall" and did not submit quarterly reports on time.
The penalty levied against Ford, which must pay up to $165 million depending on its adherence to the terms of the order, is one of the largest in the NHTSA's 54-year history. It is second only to the penalty against now-bankrupt airbag maker Takata, which was responsible for more than 30 deaths and 400 injuries worldwide.
The models covered by the Ford recall included the 2020 Ford Edge, Escape, Expedition, Explorer, F-150, Mustang, Ranger and Transit, as well as the Lincoln Corsair and Nautilus.
No fatalities or injuries were related to the recall, according to Ford's quality communications manager Maria Buczkowski. Ford said in a statement that it would work with the NHTSA to resolve the issue.
How much does Ford actually need to pay?
Of the $165 million civil penalty fined by NHTSA, Ford must immediately pay $65 million up front.
An additional $55 million fee is subject to Ford's adherence to the terms of the consent order over the next three years.
That order requires Ford to put the remaining $45 million toward investments in advanced data tools and a new testing facility devoted to reviewing rearview camera components.
Ford and the NHTSA will meet quarterly to ensure its compliance with the terms of the consent order.
The automaker is also required to review recent past recalls to ensure they included all potentially affected vehicles, issue new recalls if necessary and increase the speed of recall decisions. The NHTSA said it is appointing an independent third party to make recommendations and ensure Ford is meeting its recall obligations.
"Timely and accurate recalls are critical to keeping everyone safe on our roads," NHTSA Deputy Administrator Sophie Shulman said in a statement. "NHTSA is committed to ensuring manufacturers comply with the laws designed to keep our roads safe."
Car owners can check whether their vehicles are affected by recalls by looking up their Vehicle Identification Number on Ford's website.
