NHTSA Issues $165M Civil Penalty and Consent Order to Ford for Recalls

The National Highway Traffic Safety Administration on Thursday announced a consent order with Ford Motor Co. for failing to comply with federal recall requirements.

The consent order includes a civil penalty of $165 million, the second-largest civil penalty in NHTSA’s history, according to the administration.

The action follows an investigation that reportedly found the company failed to recall vehicles with defective rearview cameras in a timely manner and failed to provide accurate and complete recall information required under the National Traffic and Motor Vehicle Safety Act.

The penalty amount of $165 million is second only to the Takata air bag consent order in the agency’s history. The order includes an upfront payment of $65 million, with an additional $55 million deferred and $45 million for performance obligations.

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 order, the Vehicle Safety Act and federal regulations.

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.

The company 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.

Ford will also be required to review all recalls it has 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.

Ford and NHTSA are set to meet quarterly. The order requires Ford to submit complete and accurate safety evaluation lists and to maintain its VIN look-up tool.

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