Ford Receives Second-Highest NHTSA Fine Ever Over Safety Issue
Ford Motor Co. is set to pay up to $165 million in penalties to the U.S. government for its slow response to vehicle recalls and inaccurate information submitted regarding these recalls. This penalty, issued by the National Highway Traffic Safety Administration (NHTSA), is the second-largest in the agency’s history, following a larger fine against Takata for defective airbags. Ford was specifically criticized for delays in recalling vehicles over faulty rearview cameras and for not providing complete information as required by federal law. The settlement includes a $65 million immediate payment, $45 million allocated for compliance spending, and an additional $55 million deferred. Furthermore, a third party will monitor Ford’s recall performance for the next three years, and Ford is required to reassess past recalls and improve its safety defect analysis. Ford has stated it will invest the compliance funds into enhancing data analytics, document management, and establishing a new testing facility, reiterating its commitment to safety improvements.
Ford Motor Co. will pay a penalty of up to $165 million to the U.S. government for moving too slowly on a recall and failing to give accurate recall information.
The National Highway Traffic Safety Administration said in a statement Thursday that the civil penalty is the second-largest in its 54-year history. Only the fine Takata paid for faulty air bag inflators was higher.
The agency says Ford was too slow to recall vehicles with faulty rearview cameras, and it failed to give the agency complete information, which is required by the Federal Motor Vehicle Safety Act.
Ford agreed to a consent order with the agency that includes a payment of $65 million and $45 million in spending to comply with the law. Another $55 million will be deferred.
“Timely and accurate recalls are critical to keeping everyone safe on our roads,” NHTSA Deputy Administrator Sophie Shulman said in the statement. “When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable.”
Under the order, an independent third party will oversee the automaker’s recall performance obligations for at least three years.
Ford also has to review all recalls over the last three years to make sure enough vehicles have been recalled and file new recalls if necessary.
The company also must review and change its recall decision-making process, improving the way it analyzes data to find safety defects in its vehicles.
Ford says it will invest the $45 million into advanced data analytics, a new document system, and a new testing lab.
“We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continuously improving safety,” Ford said in a statement.
The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.
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