On Thursday, the National Highway Traffic Safety Administration (NHTSA) fined Ford for delaying a recall of over 600,000 vehicles with faulty rearview cameras. The U.S. auto safety regulator also stated that the automaker neglected to provide complete and accurate recall information as outlined in the National Traffic and Motor Vehicle Safety Act.
The staggering $165 million civil penalty, the second-largest in the agency’s history, underscores the severity of Ford’s neglect. This has placed its day-to-day operations under a microscope, raising serious concerns about its compliance with safety regulations.
NHTA’s consent order requires Ford to pay $65 million upfront, $55 million in deferred payments, and $45 million in spending to invest in operational changes required to reach compliance.
Ford will invest $45 million in advanced data analytics, the development of a new document system, and the building of a new testing lab.
In addition, for the next three years, an independent third party, chosen by NHTSA, will oversee Ford’s operations to ensure compliance with the consent order, the Vehicle Safety Act, and federal regulations. This third party will have the authority to review Ford’s actions and make recommendations for improvement.
Ford must also investigate the recalls they issued in the past three years and issue new recalls if necessary.
Until the consent order is closed, Ford will meet with NHTSA quarterly.
So far this year, the automaker has issued 58 recalls for 4.2 million vehicles. The issues have ranged from faulty rearview cameras to engine defects and suspension issues.
With NHTSA’s intervention, there is hope that this will be a major turning point for Ford. The company, which has been working to improve its quality over the past few years, now has the opportunity to make significant changes and regain public trust.
