Ford Motor Co. received a consent order from the National Highway Traffic Safety Administration that includes a $165 million fine for failing to timely comply with a September 2020 recall for a rearview camera failure in about 620,000 vehicles.
The NHTSA also said Ford failed to provide it with accurate and complete information about the recall as required by the National Traffic and Motor Vehicle Safety Act.
“Timely and accurate recalls are critical to keeping everyone safe on our roadways,” said Sophie Shulman, deputy administrator of the NHTSA, in a Nov. 14 press release. “NHTSA is committed to ensuring that manufacturers comply with laws designed to keep our roadways safe.”
According to the NHTSA, the NHTSA consent order includes an upfront fine of $65 million, with an additional $55 million deferred and $45 million for performance obligations. The automaker’s fine is the second largest civil penalty in NHTSA history, the agency said in the release.
The monetary and nonmonetary provisions of the order are “designed to improve Ford’s compliance with the law,” according to the release. But the consent order does not constitute an admission of any liability by Ford, according to the automaker’s filing.
“When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable,” Shulman said in the release.
The recall that led to the fine was issued on September 23, 2020. The recalled models included the F-150, F-250, F-350, F-450, F-550, Expedition, Explorer, Mustang, Transit van, Escape, Ranger, Edge and Lincoln Nautilus and Corsair vehicles. It is estimated that up to 47 percent of recalled vehicles have the camera defect, according to the NHTSA report.
The problem was found to be related to the reversing camera circuit board. The camera and hardware were manufactured by Michigan-based Tier 1 supplier Magna Electronics. Ford first introduced the camera into production in October 2019 and installed it in various vehicles through June 2020.
Ford’s investigation into the problem found that the camera plug terminals on the circuit board can shift and deform when wires are inserted during assembly. The part was revised after Ford received a high number of warranty claims for reversing camera failures on some vehicles. The improved version restores the previous PCB header design with sturdier pins, so they don’t deform when connected.
As part of the NHTSA consent order, which was signed Nov. 13 and has a base term of three years, an independent third party will oversee and make recommendations regarding all performance obligations to address recalls and evaluate Ford’s compliance with them.
Ford is also required to review its previous recalls from the past three years to ensure they have been properly addressed and, if necessary, file new recalls within five business days if it identifies any inaccuracies.
The NHTSA also requires Ford to review its recall decision-making process and make any necessary changes, including the company’s ability to analyze data to better identify safety-related defects.
Among the requirements, Ford must develop and implement a safety data analytics platform that includes easily accessible documents with all information relevant to both internal and NHTSA-initiated safety investigations. The consent order requires Ford to spend at least $20 million to upgrade its analytics capabilities.
According to the release, Ford also needs to improve information sharing and speed up recall decisions.
The NHTSA also ordered Ford to build a multi-mode imaging test lab focused on low-voltage electronics such as printed circuit boards, as well as invest in a vehicle identification number tracking system to track components used in the vehicle assembly.
Representatives from Ford and NHTSA will meet quarterly to ensure the company complies with the consent order.
Ford has issued dozens of recalls this year and had the most of any major automaker this year with 62, according to the NHTSA. The recalls potentially include more than 4 million vehicles. Last month, Ford reported a $100 million year-over-year profit decline in the third quarter, attributed to high warranty costs and other factors after several other major recalls in 2024.
In June, Ford issued a recall for its 2014 F-150 pickup truck for a transmission problem, potentially including up to 550,000 trucks.