On Thursday, the U.S. National Highway Traffic Safety Administration (NHTSA) announced that Ford Motor Company has agreed to pay a civil penalty of $165 million due to delays in recalling vehicles with faulty rear cameras. The investigation revealed that Ford failed to initiate timely recalls for these vehicles.
Ford agreed to pay $65 million in cash and invest $45 million in advanced data analytics, new testing facilities, and other projects as part of a compliance order that will last at least three years.
The company must withhold $55 million if it complies with the agreement. Ford expressed its contentment with resolving the investigation and reaffirmed its commitment to continuously improving safety and regulatory compliance.
Under the agreement, Ford will thoroughly review all recalls initiated in the past three years and submit new recalls if necessary. The company will also hold quarterly meetings with NHTSA and develop enhanced safety data analysis.
Furthermore, Ford plans to establish an imaging testing laboratory focused on low-voltage electronics and invest in a tracking system based on vehicle identification numbers to monitor parts at the individual vehicle level.
An independent third party will monitor Ford’s compliance with the consent order, providing recommendations and assessing progress. NHTSA emphasized the need for the automaker to overhaul its recall decision-making process, particularly its data analysis capabilities, to prevent future delays in identifying and addressing safety defects.
Ford shares closed steady at $11.07 following the announcement, reflecting investor confidence in the company’s ability to meet the settlement terms while maintaining financial stability.
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