Ford Motor Company will pay a penalty of up to $165 million to the U.S. government for delays in recalling vehicles and for providing inaccurate recall information. The National Highway Traffic Safety Administration (NHTSA) announced this on Thursday, noting that the fine is the second-largest in the agency’s history, only surpassed by the penalty paid by Takata for its faulty airbag inflators.
According to NHTSA, Ford was slow to issue recalls for vehicles with defective rearview cameras and failed to provide complete and accurate information to the agency, which is required under the Federal Motor Vehicle Safety Act.
As part of a consent agreement with NHTSA, Ford will pay a $65 million fine and invest $45 million to improve its compliance with safety regulations. An additional $55 million of the penalty will be deferred.
NHTSA Deputy Administrator Sophie Shulman emphasized the importance of timely and accurate recalls to ensure road safety. She also stated that when manufacturers fail to meet their legal obligations and protect the public, NHTSA will take action to hold them accountable.
As part of the settlement, an independent third party will monitor Ford’s recall performance for at least the next three years. Additionally, the company must review all recalls from the past three years to ensure that enough vehicles were included and issue new recalls if needed.
Ford is also required to reassess and improve its recall decision-making process, specifically by enhancing the way it analyzes data to identify safety defects in its vehicles.
To comply with these requirements, Ford plans to invest $45 million into advanced data analytics, a new document management system, and a new testing lab.
In a statement, Ford expressed its appreciation for the opportunity to resolve the issue with NHTSA and reaffirmed its commitment to continually improving vehicle safety.