Ford Faces Massive Fine Over Rearview Camera Recall Issues

Ford Motor Co. faces a hefty $165 million penalty from the National Highway Traffic Safety Administration (NHTSA) for mishandling recalls of defective rearview cameras, highlighting significant safety and compliance issues within the automotive giant.

At a Glance

Ford to pay up to $165 million for slow recall actions and inaccurate information
Penalty is NHTSA’s second-largest, following Takata’s airbag inflator fine
Over 620,000 vehicles in the U.S. affected by faulty rearview cameras
Ford agrees to consent order, including external oversight and process improvements
Company commits to enhancing safety and compliance measures

NHTSA Cracks Down on Ford’s Recall Deficiencies

The National Highway Traffic Safety Administration has levied a substantial $165 million penalty against Ford Motor Co. for its mishandling of recalls related to defective rearview cameras. This penalty, the second-largest in NHTSA’s history, underscores the agency’s commitment to enforcing safety regulations and holding automakers accountable for their actions.

The investigation revealed that Ford violated multiple laws by delaying recalls and providing inaccurate information. The problematic recall, initiated in September 2020, involved over 620,000 vehicles in the United States, including popular models such as F-Series pickups, Mustangs, and various SUVs. The defect was linked to a faulty circuit board causing rearview cameras to fail, potentially increasing the risk of crashes.

NHTSA fined Ford $165 million for being slow to issue a recall for defective rearview cameras.https://t.co/hniAkVbgFE

— Motor1 (@Motor1com) November 14, 2024

Consent Order and Compliance Measures

As part of the settlement, Ford has agreed to a consent order that includes a $65 million payment, $45 million in compliance spending, and a deferred $55 million penalty. The company will be subject to oversight by an independent third party for at least three years to ensure adherence to recall procedures and safety regulations.

“Timely and accurate recalls are critical to keeping everyone safe on our roads. 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

Ford is required to review all recalls from the past three years and improve its recall decision-making process. The company will invest $45 million in advanced data analytics, a new document system, and a testing lab to enhance its defect identification and reporting processes. These measures aim to address the high warranty and recall costs that have affected Ford’s profits and stock price in recent years.

Ford’s Response and Future Commitments

While Ford has disagreed with some of NHTSA’s assertions, the company has expressed commitment to improving safety and compliance. CEO Jim Farley emphasized a focus on cost reduction and efficiency, stating the company’s dedication to addressing these issues.

“We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continuously improving safety. We look forward to working with NHTSA and the independent third party to implement further enhancements.” – Ford

It’s important to note that this penalty does not resolve all conflicts between Ford and NHTSA, as there are ongoing investigations into other recall issues. The automotive industry will be closely watching Ford’s progress in implementing these new measures and improving its recall processes to ensure better safety standards for consumers.