The penalty is the second largest in NHTSA history. (Credit: ALM archives)
The National Highway Traffic Safety Administration (NHTSA) has issued a $165 million civil penalty against Ford Motor Company for its failure to comply with federal recall requirements.
An NHTSA investigation found Ford failed to recall vehicles with defective rearview cameras in a timely manner. It also failed to provide accurate and complete recall information in compliance with the National Traffic and Motor Vehicle Safety Act.
“Timely and accurate recalls are critical to keeping everyone safe on our roads,” said Sophie Shulman, NHTSA deputy administrator, in a press release. “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.”
The $165 million penalty is the second largest in the agency’s 54-year history, following only the Takata air bag penalty the NHTSA issued in 2015 for $200 million. Ford will have to make an upfront payment of $65 million and then spend an additional $45 million to comply with the law. The remaining $55 million will be deferred until the NHTSA determines the company has fulfilled its obligations.
Over the next three to four years, Ford will be required to:
- Develop and implement safety data analytics infrastructure and an end-to-end information and document platform with all relevant information for internal and NHTSA-initiated safety investigations;
- Build a multi-modal imaging test lab focusing on low-voltage electronics and invest in a vehicle identification number-based traceability system to track all components;
- Review all recalls it has issued over the last three years to ensure they have been properly scoped and, if necessary, file new recalls; and
- Review and make any necessary changes to its recall process.
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