Ford Fined $165M Over Inaccurate Recall That Was Conducted Too Slowly for Customer Safety

Federal safety officials have fined Ford Motor Company $165 million, the second-largest civil penalty in National Highway Traffic Safety Administration (NHTSA) history, for failing to comply with federal requirements regarding a recall, which did not adequately address all vehicles that may experience serious safety problems.

NHTSA issued the consent order (PDF) on November 13, after the agency started an investigation into a 2021 Ford recall that did not initially include all vehicles that may experience serious risks due to defective rearview cameras, and failed to provide accurate and complete information about the scope of malfunctions that may occur.

Consent orders are legal agreements that a company enters into with federal agencies, to resolve allegations regarding a company’s safety compliances and practices.

Following an announcement of the $165 million fine that resolves issues stemming from the 2021 recall, the NHTSA initiated two other investigations into different recalls, which also may have failed to follow federal requirements.

One investigation involves a 2024 Ford Expedition and Lincoln Navigator seatbelt recall, which did not address problems with seatbelts in certain models that were not part of the initial recall.

The other investigation involves a 2024 Ford Bronco Sport and Maverick Truck recall over a battery malfunction risks, which may cause vehicles to suddenly lose power. NHTSA has subsequently received at least 15 reports from vehicle owners who already received the recall repair, but are still experiencing problems with sudden power loss.

The consent order and fine are intended to improve Ford’s compliance with recall requirements set by the National Traffic and Motor Vehicle Safety Act. The order will remain in place for three years, with NHTSA reserving the option to extend any part of it for a fourth year.

The fine is the second-largest in NHTSA’s 54-year history, behind only a $200 million Takata airbag fine, which was issued in 2015, after millions of vehicles were found to contain defective airbag inflators that may explode and send shrapnel or debris into the passenger compartment during a crash.

Under the order, Ford is required to review and update its recall decision-making process, improve data analysis for identifying safety defects, enhance information-sharing, and speed up recall decisions.

The company will be required to build infrastructure for safety data analytics as well as a platform where all relevant information and documents concerning safety investigations will be made available.

In addition, NHTSA is requiring Ford to review all recalls they have issued over the past three years and to build a test lab that focuses on low-voltage electronics, as well as investing in a vehicle identification number (VIN)-based system to track vehicle parts at the VIN level.

Finally, Ford must update its Vehicle Safety Act compliance policies and meet with NHTSA quarterly.

As investigations into previous recalls are conducted, consumers should stay alert for updates on recalls that may affect their vehicles.

“Timely and accurate recalls are critical to keeping everyone safe on our roads,” NHTSA Deputy Administrator Sophie Shulman said in the announcement. “NHTSA is committed to ensuring manufacturers comply with the laws designed to keep our roads safe. When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable.”