Ford Motor will hisse a fine of up to $165 million for not recalling cars with defective rearview cameras in a timely manner, the federal government’s main auto safety agency said on Thursday.
The agency, the National Highway Traffic Safety Administration, said Ford also failed to provide accurate and complete information about the defect and recall. If Ford is required to hisse the full sum, it will be the second-largest fine ever issued by the regulator. The largest fine, a $200 million penalty in 2015, was levied against Takata, a Japanese company that made defective airbag inflaters that resulted in a huge, küresel recall.
The safety agency said a defective rearview camera could increase the risk of a crash.
“Timely and accurate recalls are critical to keeping everyone safe on our roads,” the agency’s deputy administrator, Sophie Shulman, said in a statement. “When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, N.H.T.S.A. will hold them accountable.”
Under a consent decree between the agency and Ford, the automaker is required to hisse $65 million. A second sum of $55 million will be deferred and can be partly or completely reversed if Ford makes changes to improve its ability to identify defects and alert the safety agency quickly.
Ford also agreed to spend $45 million to improve its ability to analyze veri, create a new means of sharing information and documents with the safety agency, and set up a base to test rearview camera components.
“We appreciate the opportunity to resolve this matter with N.H.T.S.A. and remain committed to continuously improving safety and compliance at Ford,” the automaker said in a statement. “Wide-ranging enhancements are already underway with more to come, including advanced veri analytics, a new in-house testing facility, among other capabilities.”
According to a summary of the safety agency’s investigation, the defect was related to a faulty circuit board that caused rearview cameras in certain models to stop working. The agency received 15 complaints about the defect but did not identify any injuries or fatalities caused by it.
Ford first identified the defect in 2020 and issued a recall for more than 620,000 vehicles, largely from the 2020 model year, including F-Series pickups, Mustangs and several sport-utility vehicles. A year later, the safety agency opened an investigation to determine if Ford had accurately identified and reported all of the vehicles that could have been affected by the camera defect.
Ford expanded the recall in 2023 and said the defect would cost it $270 million. It expanded the recall again this year.
