Ford will pay the second largest civil penalty ever handed down by the National Highway Traffic Safety Administration (NHTSA) for its mishandling of a recall. NHTSA issued the penalty last week as part of a consent order with Ford Motor Company for failing to comply with federal recall requirements. NHTSA says the action follows an investigation that found the company failed to recall more than 620,000 vehicles with defective rearview cameras in a timely manner in 2020 and failed to provide accurate and complete recall information as required by the National Traffic and Motor Vehicle Safety Act.
“Timely and accurate recalls are critical to keeping everyone safe on our roads,” NHTSA Deputy Administrator Sophie Shulman said. “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.”
In terms of civil penalties, it's the largest one handed down in the agency's 54-year history. The largest one being the one handed down in the Takata faulty air bag consent order. The Ford consent order includes an upfront payment of $65 million, with an additional $55 million deferred and $45 million for performance obligations.
Federal safety regulators say the monetary and non-monetary provisions of the order are designed to improve Ford’s compliance with the law. As part of the order, an independent third party will oversee and make recommendations regarding all performance obligations and assess the company’s compliance with the consent order, the Vehicle Safety Act, and federal regulations.
Also under the order, Ford is required to develop and implement safety data analytics infrastructure as well as an end-to-end information and document interface platform with all relevant information for internal and NHTSA-initiated safety investigations.
There are other requirements, too:
- Ford will also be required to build a multi-modal imaging test lab that focuses on low-voltage electronics and invest in a vehicle identification number-based traceability system to track components at the VIN level.
- The automakers also has to go back and review all recalls it's issued over the last three years to ensure they have been properly scoped and, if necessary, file new recalls.
- Additionally, 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. It will also require the company to improve information-sharing across disciplines and increase the speed of recall decisions. The company will be required to develop and/or update its Vehicle Safety Act compliance written policies and procedures.
- Ford must also submit complete and accurate safety evaluation lists and to maintain its VIN look-up tool.
The base term of the order is three years, with NHTSA reserving the option to extend all or parts of the order for a fourth year. NHTSA says it will meet with Ford quarterly.
Read the official NHTSA press release here.
The 2020 Ford Expedition was part of a Ford safety recall of more than 620,000 vehicles in 2020.
Photo Credit: Ford.