By David Shepardson
WASHINGTON (Reuters) -The National Highway Traffic Safety Administration said Thursday Ford Motor (NYSE:F) has agreed to a $165 million civil penalty after a government investigation found the automaker failed to recall vehicles with defective rearview cameras in a timely manner.
Under a consent order that will last at least three years, the No. 2 U.S. automaker must pay $65 million in cash, spend $45 million on advanced data analytics, a new testing facility and other projects and $55 million will be held in abeyance subject to complying with the agreement.
NHTSA in August 2021 opened an investigation after Ford in 2020 recalled 620,246 vehicles for a rear camera issue to determine whether the carmaker recalled the vehicles in a timely fashion. Ford expanded that recall in 2022 and in March adding about 24,000 vehicles.
NHTSA said Ford provided inaccurate or incomplete information, did not submit timely quarterly reports for other recalls and did not fully comply with public availability of vehicle recall information. Ford said it disagreed with NHTSA’s assessment.
Ford said it was pleased to resolve the investigation and remains “committed to continuously improving safety and compliance at Ford.”
Ford must conduct a thorough review of all recalls it has filed in the last three years and if needed, file new recalls. NHTSA said an independent third party will oversee and make recommendations on all performance obligations and assess the company’s compliance with the consent order.
Under the order, Ford will hold quarterly meetings with the NHTSA and is required to develop safety data analytics.
Ford must also build an imaging test lab that focuses on low-voltage electronics and invest in a vehicle identification number-based traceability system to track components at the individual vehicle level.
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.”