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Ford Motor hit with $165 million US penalty over delayed rearview camera recalls
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Ford Motor hit with $165 million US penalty over delayed rearview camera recalls
Nov 15, 2024 11:27 AM

WASHINGTON, Nov 14 (Reuters) - The National Highway

Traffic Safety Administration said Thursday Ford Motor has

agreed to a $165 million civil penalty after a government

investigation found the automaker failed to recall vehicles with

defective rearview cameras in a timely manner.

Under a consent order that will last at least three years,

the No. 2 U.S. automaker must pay $65 million in cash, spend $45

million on advanced data analytics, a new testing facility and

other projects and $55 million will be held in abeyance subject

to complying with the agreement.

NHTSA in August 2021 opened an investigation after Ford in

2020 recalled 620,246 vehicles for a rear camera issue to

determine whether the carmaker recalled the vehicles in a timely

fashion. Ford expanded that recall in 2022 and in March adding

about 24,000 vehicles.

NHTSA said Ford provided inaccurate or incomplete

information, did not submit timely quarterly reports for other

recalls and did not fully comply with public availability of

vehicle recall information. Ford said it disagreed with NHTSA's

assessment.

Ford said it was pleased to resolve the investigation

and remains "committed to continuously improving safety and

compliance at Ford."

Ford must conduct a thorough review of all recalls it

has filed in the last three years and if needed, file new

recalls. NHTSA said an independent third party will oversee and

make recommendations on all performance obligations and assess

the company's compliance with the consent order.

Under the order, Ford will hold quarterly meetings with

the NHTSA and is required to develop safety data analytics.

Ford must also build an imaging test lab that focuses on

low-voltage electronics and invest in a vehicle identification

number-based traceability system to track components at the

individual vehicle level.

NHTSA is requiring Ford to "review and make any

necessary changes to its recall decision-making process,

including Ford's ability to analyze data to identify

safety-related defects and non-compliances."

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