KUALA LUMPUR – The US National Highway Traffic Safety Administration (NHTSA) has imposed a fine of up to US$165 million (RM740 million) against Ford Motor Co for delaying a recall of vehicles with faulty rearview cameras, making it the second-largest penalty in the agency’s history.
The only higher fine was against now-bankrupt airbag maker Takata in 2015, which faced extensive recalls following incidents causing fatalities and injuries.
According to AP, the NHTSA found that Ford had not acted promptly to recall approximately 600,000 vehicles in 2020 after drivers reported issues with rearview cameras displaying blank screens.
Federal regulations require carmakers to notify the NHTSA immediately when defects are identified and to provide regular updates on recall progress. In this instance, Ford was found to have missed deadlines for quarterly reports and failed to provide accurate recall information.
Ford’s recall affects several models, including the 2020 Ford Edge, Escape, Expedition, Explorer, F-150, Mustang, Ranger, and Transit, along with the Lincoln Corsair and Nautilus.
Although there were no injuries or fatalities tied to the defective rearview cameras, the NHTSA stated that accurate and timely recalls are “critical to keeping everyone safe on our roads,” according to deputy administrator Sophie Shulman.
The fine’s structure includes an immediate US$65 million payment by Ford, while another US$55 million is conditional on the company’s compliance with safety obligations over the next three years. An additional US$45 million will go toward advanced data technology and the establishment of a new testing lab to evaluate rearview camera components.
The NHTSA will conduct quarterly reviews to ensure Ford upholds these commitments, with oversight by an independent third-party expert in motor vehicle safety.
Ford acknowledged the importance of resolving the matter according to TechCrunch, stating “Wide-ranging enhancements are already underway with more to come, including advanced data analytics, a new in-house testing facility, among other capabilities.” – November 15, 2024