Summary
Ford Motor Company has entered into a Consent Order with the National Highway Traffic Safety Administration (NHTSA) to resolve allegations concerning the timeliness of a 2020 rearview camera performance recall. While Ford does not admit liability, the agreement entails a significant $165 million civil penalty. This penalty is structured with an immediate cash payment, a portion held in abeyance contingent on compliance, and a substantial investment in enhancing Ford's compliance and safety data capabilities.
Key Highlights
- 1Ford agrees to a $165 million civil penalty with NHTSA, resolving a probe into the timeliness of a 2020 rearview camera recall.
- 2The penalty includes $65 million in immediate cash payment, $55 million held in abeyance, and $45 million for investments in advanced data analytics and a new testing facility to improve compliance.
- 3Ford will submit monthly Safety Evaluation Lists (SEL) to NHTSA and engage in quarterly meetings to discuss safety-related issues.
- 4An independent third party, chosen by NHTSA, will assess Ford's adherence to the Consent Order and Vehicle Safety Act over the three-year term.
- 5Ford commits to reviewing its past recalls from the last three years to ensure all affected vehicles were included, with potential for recall updates.
- 6The Consent Order has a term of three years, with a possible one-year extension at NHTSA's discretion.
- 7This action resolves allegations without an admission of liability by Ford.
Frequently Asked Questions
The Consent Order includes a $165 million civil penalty. This is broken down into a $65 million cash payment, $55 million held in abeyance (subject to compliance), and $45 million designated for investments in enhanced compliance measures such as advanced data analytics and a new testing facility.
Ford is resolving allegations from NHTSA that a 2020 recall for rearview camera performance may not have been timely under NHTSA's regulations. The Consent Order allows Ford to resolve these allegations without admitting liability.
Ford must submit a monthly Safety Evaluation List (SEL) to NHTSA, hold quarterly meetings with NHTSA to discuss safety issues, and hire an independent third party (selected by NHTSA) to assess compliance with the Consent Order and Vehicle Safety Act over the three-year term. Additionally, Ford will review its past recalls to ensure all impacted vehicles were captured.
The Consent Order has an initial term of three years, and NHTSA has the discretion to extend it for an additional year.