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NHTSA Imposes $165M Fine On Ford, Marking Historic Penalty
Story by Amanda Cline3 min read
Ford is in some hot water this week after the NHTSA found that it moved too slowly on some important recalls. While the issue was fairly minor at first, with some Ford F-150 trucks and Escape SUVs having intermittent backup camera issues, that has now exploded into a $165 million fine.
Ford Failed To Fix A Backup Camera Issue On 14 Models
According to the NHTSA, Ford's $165 million fine was the second-largest civil penalty issued in the agency's history. After failing to comply with federal recall requirements, the automaker will have to pay a very hefty fine. The total civil penalty amount is $165 million, $65 million of which has to be paid upfront. There is also an additional $55 million deferred and $45 million for performance obligations. This is the second-biggest fine only to the Takata airbag case, which remains the largest automotive recall ever.
This stems from an issue back in August 2021 when Ford Motor Company failed to issue a recall for an inoperable rearview camera. The camera was present in 620,246 vehicles, including all the following makes and models from 2020:
- Ford F-150
- Ford F-250
- Ford F-350
- Ford F-450
- Ford F-550
- Ford Explorer
- Ford Mustang
- Ford Transit
- Ford Expedition
- Ford Escape
- Ford Ranger
- Ford Edge
- Lincoln Nautilus
- Lincoln Corsair
Ford Did Not Act Fast Enough When Presented With The Information
According to the investigation, Ford "identified and monitored warranty claims pertaining to intermittent or inoperative rearview cameras," and opted to change the product going forward. This happened around February through April 2020. The NHTSA notified Ford of the issue in July 2020, specifically on some Ford Escape SUVs. It was also noted in some Vehicle Owner Questionnaires (VOQs) from that time. Ford met with the NHTSA to discuss the issue, but it seems to have gone cold after that.
NHTSA is committed to ensuring manufacturers comply with the laws designed to keep our roads safe. When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable.
Sophie Shulman | NHTSA Deputy Administrator
According to the National Traffic and Motor Vehicle Safety Act, Ford should have acted on the issue immediately and provided an accurate and complete recall for owners. As a result of the fine, Ford will have to work with a third part to ensure the companys compliance with the consent order, the Vehicle Safety Act, and federal regulations.
Ford Has A Long Road Ahead To Appease The NHTSA
The fine isn't the only stipulation, either. Ford will have to build a "multi-modal imaging test lab that focuses on low-voltage electronics," as well as invest in a "vehicle identification number-based traceability system to track components at the VIN level." The automaker will also have to comb through recalls from the past three years to ensure they have been sufficiently investigated and fixed.
The NHTSA also wanted to ensure Ford is making changes to its recall decision-making process, including how the company analyzes and uses safety data. Ford will have to develop, if it doesn't have one, or update its Vehicle Safety Act compliance policies and procedures. Basically, Ford is in time out and will have to prove itself trustworthy again.
https://www.msn.com/en-us/autos/new...S&cvid=f4ea3f459eb14094e377479d9d07d68f&ei=36
