Ford Hit with Massive Fine Due to Astonishing Safety Oversights

Ford Motor Co. faces a staggering $165 million fine from the National Highway Traffic Safety Administration for delayed recalls and safety issues, with faulty rearview cameras at the center of the controversy.

At a Glance

Ford to pay up to $165 million in penalties for slow recall actions and inaccurate information
The fine is the second-largest in NHTSA history, following Takata’s airbag inflator penalty
Over 620,000 vehicles in the U.S. were affected by faulty rearview cameras
Ford agrees to improve compliance measures and undergo external monitoring
The automaker must review all recalls from the past three years and enhance its decision-making process

NHTSA Levies Historic Fine Against Ford

The National Highway Traffic Safety Administration (NHTSA) has imposed a hefty $165 million fine on Ford Motor Co. for its mishandling of vehicle recalls, particularly concerning problematic rearview cameras. This penalty marks the second-largest in NHTSA’s history, surpassed only by the Takata airbag inflator fine. The severity of the fine underscores the gravity of Ford’s violations and the importance of timely recalls in ensuring public safety on America’s roads.

The NHTSA’s investigation revealed that Ford violated multiple laws by delaying recalls and providing inaccurate information. The recall in question, initiated in September 2020, involved over 620,000 vehicles in the United States and more than 700,000 in North America. The defect was linked to a faulty circuit board causing rearview cameras to fail in certain models, including popular F-Series pickups, Mustangs, and SUVs.

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

Ford’s Response and Compliance Measures

In response to the NHTSA’s findings, 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 automaker will invest in advanced data analytics, a new document system, and a testing lab to improve its recall procedures. Additionally, an independent third party will oversee Ford’s recall performance for at least three years.

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

As part of the agreement, Ford must review all recalls from the past three years and enhance its recall decision-making process. This comprehensive approach aims to prevent future delays and ensure more accurate reporting of safety issues.

Impact on Ford’s Operations and Finances

The substantial fine and required improvements come at a challenging time for Ford. The automaker has been grappling with high warranty and recall costs that have significantly impacted its profits and stock price. CEO Jim Farley has emphasized the company’s commitment to addressing these issues, stating, “We’re going to continue to stay laser-focused on cost and getting leaner as a company.”

“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,” said Sophie Shulman, NHTSA’s Acting Administrator.

While the faulty rearview cameras have not been linked to serious harm, unlike the Takata airbag issue that caused at least 28 deaths, the NHTSA’s action sends a clear message about the importance of prompt and thorough recalls. Ford’s agreement to improve its processes and invest in new technologies demonstrates a commitment to enhancing safety standards and rebuilding trust with consumers and regulators alike.