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The National Highway Traffic Safety Administration (NHTSA) slaps Ford with a $165 million civil penalty as part of a consent decree after determining the automaker failed to timely recall vehicles with defective rearview cameras. did.
The penalty, the second-largest in the agency's 54-year history, includes an upfront payment of $65 million, an additional $55 million in deferrals and a $45 million performance obligation. NHTSA Said.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| F | ford motor corporation | 11.07 | -0.03 |
-0.27% |
However, Ford may not end up paying the full $165 million total because $55 million will be withheld over the next three years, contingent on the automaker complying with the terms of the consent order.
Ford and NHTSA agreed that Ford will invest the remaining $45 million in a new test facility to test advanced data analytics, information and document interface platforms, and rearview camera components.
Ford recalls pickup trucks due to possible rearview camera problem
After Ford recalled 620,246 vehicles in 2020 due to rear camera issues, NHTSA launched an investigation in August 2021 to determine whether the automaker recalled vehicles in a timely manner. Ford expanded its recall in 2022 and March to include approximately 24,000 additional vehicles.
A Ford sign at a dealership on June 21, 2024 in Richmond, California. NHTSA this week handed Ford the second-largest civil penalty in the agency's history. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
NHTSA said Ford provided inaccurate or incomplete information, did not submit timely quarterly reports for other recalls, and was not fully compliant in disclosing vehicle recall information.
Ford recalls 144,500 Maverick trucks due to rearview camera display issue
There have been no deaths or injuries related to the recall that gave rise to the consent order.
“Timely and accurate recalls are critical to keeping everyone safe on the roadways,” NHTSA Deputy Administrator Sophie Schulman said in a statement. “NHTSA is committed to ensuring that manufacturers comply with laws set to keep our roads safe. If a manufacturer fails to prioritize the safety of Americans and meet its obligations under federal law, NHTSA will hold the manufacturer accountable. will be pursued.”
Ford said it disagrees with NHTSA's assessment but is satisfied with resolving the investigation.
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“We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continuous improvement in safety and compliance at Ford Motor Company,” the company said in a statement to FOX Business. “Extensive enhancements are already underway, and many more are on the way, including advanced data analytics and new in-house testing facilities, among others.”
Reuters contributed to this report.
