Ford Motor Co. has been hit with a substantial $165 million penalty by the US government for its handling of a rearview camera recall.
The National Highway Traffic Safety Administration (NHTSA) levied the fine, the second-largest in its history, citing Ford’s delayed recall and failure to provide accurate information.
The NHTSA criticized Ford for its sluggish response to the faulty rearview camera issue, affecting over 620,000 vehicles in the US and more than 700,000 in North America.
The agency also faulted the automaker for providing incomplete information, a violation of the Federal Motor Vehicle Safety Act.
“Timely and accurate recalls are critical to keeping everyone safe on our roads,” emphasized NHTSA Deputy Administrator Sophie Shulman.
“When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable.”
The terms of the consent order: oversight and improvements
Under the consent order, Ford will pay $65 million directly and invest $45 million in enhancing its recall compliance processes.
An additional $55 million is deferred.
The agreement also mandates independent oversight of Ford’s recall performance for at least three years, requiring the automaker’s full cooperation with the appointed monitor.
Ford is obligated to review all recalls from the past three years to ensure adequacy and issue new recalls if necessary.
The company must also revamp its recall decision-making process, including data analysis methods for identifying safety defects, and invest in technology to track parts by vehicle identification number.
Ford has committed to investing the $45 million in advanced data analytics, a new document management system, and a new testing laboratory.
Ford’s response: a commitment to continuous improvement
“We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continuously improving safety,” Ford said in a statement.
The automaker acknowledged the need for improvements and expressed a willingness to work with the NHTSA and the independent monitor to implement enhancements.
The company says it has learned from the camera recall.
“We look forward to working with NHTSA and the independent third party to implement further enhancements,” Ford said.
A history of camera troubles
The initial recall for the faulty rearview cameras occurred in September 2020, covering several 2020 models, including the popular F-Series pickup truck.
NHTSA documents reveal that Ford had identified warranty claims related to the cameras between February and April 2020, with the issue brought before a Ford committee in May.
The NHTSA contacted Ford about camera complaints in July 2020.
During an August 2020 meeting, Ford presented data showing high camera failure rates across several 2020 models.
Subsequently, Ford issued two additional recalls in 2022 and 2024 for the same camera problem, adding approximately 24,000 vehicles to the initial recall.
Ongoing scrutiny of Ford’s recall practices
The $165 million penalty doesn’t mark the end of Ford’s challenges with the NHTSA.
Earlier this year, the agency launched an investigation into a recall repair for Ford SUVs related to gasoline leaks and potential engine fires.
In an April 25th letter to Ford, investigators expressed “significant safety concerns” about the March 8th recall of nearly 43,000 Bronco Sport and Escape SUVs.
Ford’s proposed fix involved adding a drain tube to divert leaking gasoline and implementing software to cut off fuel supply upon leak detection.
However, the NHTSA’s Office of Defects Investigation believes this remedy fails to address the root cause and doesn’t proactively replace defective fuel injectors.
While Ford maintains it has a strong recall process and is committed to legal compliance, the company acknowledges the need for continuous improvement.
Ford said that it has a strong recall process and is committed to complying with the law, but it can always improve.
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