NHTSA Issues $165 Million Civil Penalty, Second Largest in Agency’s History

The National Highway Traffic Safety Administration today announced a consent order with Ford Motor Company for failing to comply with federal recall requirements. The consent order includes a civil penalty of $165 million, the second-largest civil penalty in NHTSA’s history. 

This action follows an investigation that found the company failed to recall vehicles with defective rearview cameras in a timely manner and failed to provide accurate and complete recall information as required by the National Traffic and Motor Vehicle Safety Act. 

“Timely and accurate recalls are critical to keeping everyone safe on our roads,” NHTSA Deputy Administrator Sophie Shulman said. “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.” 

The total civil penalty amount of $165 million is second only to the Takata air bag consent order in the agency’s 54-year history. The consent order includes an upfront payment of $65 million, with an additional $55 million deferred and $45 million for performance obligations. 

The monetary and non-monetary provisions of the order are designed to improve Ford’s compliance with the law. As part of the order, an independent third party will oversee and make recommendations regarding all performance obligations and assess the company’s compliance with the consent order, the Vehicle Safety Act, and federal regulations. 

The base term of the order is three years, with NHTSA reserving the option to extend all or parts of the order for a fourth year. Under the order, Ford is required to develop and implement safety data analytics infrastructure as well as an end-to-end information and document interface platform with all relevant information for internal and NHTSA-initiated safety investigations. 

The company will also be required to build a multi-modal imaging test lab that focuses on low-voltage electronics and invest in a vehicle identification number-based traceability system to track components at the VIN level. 

Ford will also be required to review all recalls it has issued over the last three years to ensure they have been properly scoped and, if necessary, file new recalls. 

Additionally, NHTSA is requiring Ford to review and make any necessary changes to its recall decision-making process, including Ford’s ability to analyze data to identify safety-related defects and non-compliances. It will also require the company to improve information-sharing across disciplines and increase the speed of recall decisions. The company will be required to develop and/or update its Vehicle Safety Act compliance written policies and procedures. 

Ford and NHTSA will meet quarterly. The consent order requires Ford to submit complete and accurate safety evaluation lists and to maintain its VIN look-up tool.