Ford Hit with Record Fine for Recall Delays: Over $160 Million

Written by Kathrine Frich

Nov.17 - 2024 11:47 AM CET

Autos
Photo: Shutterstock
Photo: Shutterstock
The automaker failed to initiate timely recalls.

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Ford has been slapped with the largest fine in the history of the U.S. National Highway Traffic Safety Administration (NHTSA) for failing to act promptly on a vehicle recall involving defective backup cameras.

A Safety Concern

The fine, totaling over $160 million, underscores the automaker's delayed response in addressing a significant safety concern, according to Boosted.

The recall in question involved more than 600,000 vehicles, including popular models such as the Ford Explorer (2020-2023), Lincoln Aviator (2020-2023), and Ford Edge (2020-2022).

The defective backup cameras either failed to display images correctly or intermittently went blank, increasing the risk of accidents while reversing.

Serious Delays

The penalty is divided into three parts. Ford must immediately pay $65 million as a direct fine. Another $45 million must be invested in new technology to improve the company’s data analysis capabilities.

The remaining $55 million is conditional, payable if Ford fails to meet NHTSA requirements within the next three years.

As part of the settlement, Ford is also required to review all recalls from the past three years and overhaul its internal procedures to prevent similar issues in the future.

NHTSA criticized Ford for serious delays in addressing the faulty backup cameras, which posed safety risks for vehicle owners.

According to the agency, the automaker failed to initiate timely recalls despite mounting evidence of the issue, and many vehicle owners continued to drive cars with the faulty systems.

The agency emphasized that such lapses are unacceptable, particularly in cases that directly impact consumer safety.

Ford acknowledged the decision in a statement: "We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continually improving safety and compliance at Ford."