• The penalty represents the second highest fine imposed by the NHTSA, just behind the Takata airbag penalty
  • An ongoing 2020 recall with a high rate of failure triggered a NHTSA investigation
  • Ford continues to struggle with recall compliance, recalled vehicles, and the most number of recalls 

The NHTSA has imposed a $165 million fine on Ford for failing to comply to a rearview camera recall in a timely and transparent manner, the safety agency announced Thursday. 

In a recall dating back to Sept 23, 2020, the NHTSA investigated and found a high rate of failure of display projections from the rearview camera mirror in 2020 Ford Escape vehicles, to start. The recall spread to most 2020 Ford vehicles, as well as the Lincoln Nautilus and Corsair. Ford originally cited the issue as a problem with the circuit board supplied by Magna Electronics. 

Many other automakers, ranging from Mercedes-Benz to Mazda, have had to recall vehicles for rearview camera images that work intermittently or otherwise don’t comply with Federal Motor Vehicle Safety Standards (FMVSS). The rearview camera was mandated in all new cars in 2018. 

Only Ford’s approach was insufficient. In late September, the 2024 Ford Maverick was recalled for balky rearview camera projections. 

Ford “failed to recall vehicles with defective rearview cameras in a timely manner and failed to provide accurate and complete recall information,” according to the NHTSA.  

The $165 million penalty marks the second-highest fine ever levied by the NHTSA. It’s second only to the fines imposed after the fatal Takata airbag fiasco that killed 28 people, injured more than 400, and encompassed 67 million airbags across an estimated 45 million vehicles from every major automaker.

“NHTSA is committed to ensuring manufacturers comply with the laws designed to keep our roads safe,” NHTSA Deputy Administrator Sophie Shulman said in a statement. “When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable.” 

The penalty begins with an upfront payment of $65 million, followed by a deferred $55 million in case Ford doesn’t meet the timeline for inputting new compliance standards. The last $45 million is to be spent by Ford on improving its recall performance. 

The last part may be the most helpful. A third party will oversee Ford’s recall process and make recommendations for the automaker with the highest number of recalls and the most vehicles recalled on an annual basis since 2021. In 2023, Ford issued 57 recalls covering more than 6.1 million cars, representing 16% of all recalled cars, according to the NHTSA. Honda recalled 6.3 million cars, but issued far fewer recalls. 

Ford’s well on pace to break those numbers this year. In the first half of 2024, Ford issued 30 recalls affecting 3.6 million cars. 

 

Related Articles