NHTSA fines Ford $165M for failure to meet federal recall requirements

NHTSA fines Ford $165 million, the second-largest civil penalty ever imposed, for failing to meet federal recall requirements.

NHTSA fines Ford

The National Highway Traffic Safety Administration (NHTSA)  found that Ford delayed recalling vehicles with faulty rearview cameras and failed to provide accurate, complete recall information.

This decision comes after an investigation into a recall involving various 2020 model vehicles, including the Ford F-150, Super Duty, Explorer, Mustang, Transit, Expedition, Escape, Ranger, and Edge, along with the Lincoln Nautilus and Corsair.

“Timely and accurate recalls are essential for the safety of everyone on our roads,” said NHTSA Deputy Administrator Sophie Shulman in a statement. “NHTSA is dedicated to ensuring manufacturers comply with laws designed to keep our roads safe. When they fail to prioritize public safety, NHTSA will hold them accountable.”

The penalty is part of a three-year consent order requiring an immediate $65 million payment from Ford, while $55 million will be deferred to ensure compliance with the order. The remaining $45 million can be invested by Ford in improvements.

Under the order, Ford is required to enhance its safety data analytics systems and develop a comprehensive information and document management platform. The automaker must also build a multimodal imaging test lab focused on low-voltage electronics and establish a vehicle identification number (VIN)-based tracking system to monitor components by VIN.

Ford must review all recalls from the past three years to confirm they were adequate and, if needed, issue additional recalls. Quarterly meetings with NHTSA officials are also mandated.

“We appreciate the opportunity to resolve this matter with NHTSA and remain committed to enhancing safety and compliance,” Ford said in a statement as reported by AutoNews.com. “Wide-ranging improvements are underway, including advanced data analytics and a new in-house testing facility, among other capabilities.”

Ford reported that no injuries or deaths have resulted from the recall that led to this consent order. Over the past three years, Ford has led the industry in U.S. recalls, a trend continuing this year, currently tied with Stellantis with 58 recalls. Company executives recently cited warranty costs as a significant factor in lowered earnings expectations.

This fine is the largest imposed by NHTSA since 2015 when Takata Corp. was ordered to pay up to $200 million over defective airbag inflators.