The National Highway Traffic Safety Administration hit Ford with a $165 million fine over its handling of recalled backup cameras on almost 600,000 cars this week. The fine, which is the second-largest penalty in the agency’s history, will see the Blue Oval pay $65 million upfront, with an additional $100 million due over the next three years.
NHTSA launched an inquiry into Ford’s handling of recalls back in August 2021. The probe looked into the automaker’s management of a recall of faulty backup cameras that were fitted to more than 600,000 Ford and Lincoln vehicles, including the Mustang and Escape.
The investigation found that Ford initiated the recall too slowly and failed to comply with federal recall requirements, reports Motor1. The automaker is now on the hook for up to $165 million in penalties:
Ford Motor Company must pay up. The National Highway Traffic Safety Administration (NHTSA) has issued a $165 million civil penalty against the automaker for failing to recall vehicles with defective rearview cameras in accordance with federal recall requirements. While the figure is grabbing headlines — the second-largest ever next to Takata’s $200-million fine — it’s the other provisions that could cause more headaches for the automaker down the line.
NHTSA is requiring Ford to review its last three years of recalls “to ensure they have been properly scoped, and, if necessary, file new recalls,” which isn’t something one of the most recalled brands of the last few years likely wants to hear. It issued the most recalls in 2023 and 2022—56 and 68, respectively—for millions of vehicles, jacking up recall and warranty costs.
Ford isn’t being ordered to pay the $165 million penalty in one go and instead the automaker must pay $65 million now and the remainder will be tied to a strict requirements, NHTSA explained in a statement. An additional $55 million fine has been deferred, while $45 million is linked to performance obligations that Ford must meet.
Namely, Ford must use the $45 million to develop and implement new safety data analytics tech that can better monitor issues with its cars. The company must also roll out an “information and document interface platform,” that contains all information relevant to NHTSA recalls and probes associated with the company.
Initially, the order will run for three years but NHTSA has the right to extend the terms if it sees fit. It could take that step if the recalls continue at Ford, as the automaker is currently one of the most recalled brands in America.
This year alone has seen the American company issue fixes for almost 1.9 million Explorer SUVs made between 2011 and 2019, and the Maverick and Bronco models were recalled over issues with battery degradation.