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The Nationwide Freeway Site visitors Security Administration (NHTSA) imposed a $165 million civil penalty on Ford as a part of a consent decree, after figuring out the automaker did not recall automobiles with faulty rearview cameras in a well timed method.
The penalty, which is the second-highest ever issued by the company in its 54-year historical past, entails an upfront cost of $65 million, with an extra $55 million deferred and $45 million for efficiency obligations, NHTSA mentioned.
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 11.01 | -0.06 | -0.54% |
Nonetheless, Ford could not find yourself paying the complete $165 million complete, as a result of the $55 million will likely be held in abeyance topic to the carmaker’s adherence to the phrases of the consent order over the subsequent three years.
Ford and NHTSA have agreed that Ford could use the remaining $45 million to put money into superior information analytics, an data and doc interface platform and a brand new testing facility to check rearview digital camera parts.
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NHTSA in August 2021 opened an investigation after Ford in 2020 recalled 620,246 automobiles for a rear digital camera subject to find out whether or not the carmaker recalled the automobiles in a well timed trend. Ford expanded that recall in 2022 and in March, including about 24,000 automobiles.
Ford signage at a dealership in Richmond, California, on June 21, 2024. NHTSA issued its second-largest civil penalty within the company’s historical past in opposition to Ford this week. (David Paul Morris/Bloomberg by way of Getty Pictures / Getty Pictures)
NHTSA mentioned Ford offered inaccurate or incomplete data, didn’t submit well timed quarterly studies for different remembers and didn’t absolutely adjust to public availability of auto recall data.
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There aren’t any fatalities or accidents associated to the recall that led to the consent order.
“Well timed and correct remembers are vital to conserving everybody protected on our roads,” NHTSA Deputy Administrator Sophie Shulman mentioned in an announcement. “NHTSA is dedicated to making sure producers adjust to the legal guidelines designed to maintain our roads protected. When producers fail to prioritize the protection of the American public and meet their obligations underneath federal legislation, NHTSA will maintain them accountable.”
Ford mentioned it disagreed with NHTSA’s evaluation, however is happy to resolve the investigation.
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“We respect the chance to resolve this matter with NHTSA and stay dedicated to repeatedly enhancing security and compliance at Ford,” the corporate mentioned in an announcement to FOX Enterprise. “Huge-ranging enhancements are already underway with extra to come back, together with superior information analytics, a brand new in-house testing facility, amongst different capabilities.”
Reuters contributed to this report.