Ford Motor Company will pay a record $17.35 million NHTSA fine for delaying the recall of more than 400,000 Ford Escape models, according to a report just published in the Wall Street Journal. If the document was leaked from the National Highway Traffic Safety Agency, then the agency is in clear violation of SEC regulation FD, for full disclosure, which says in essence that material information should be released to all, not selectively. If so, NHTSA should be fined as well.
This was apparently the second plea bargain by an automaker this year to avoid protracted litigation with NHTSA over a safety defect. Chrysler in June negotiated a deal on Jeep gas tank fires. Neither automaker admitted guilt in the NHTSA deals, an important defense in product liability litigation that always surrounds major recalls. In the Escape sudden acceleration matter, there are multiple accidents and injuries and at least one fatality alleged.
“The National Highway Traffic Safety Administration is deeply committed to ensuring the highest standards of safety on our roadways. It is critical to the safety of the driving public that manufacturers address automotive safety issues quickly and in a forthright manner. As government regulators, it is our job to ensure that manufacturers are held accountable to address safety issues promptly and responsively. Recalls are a serious safety matter and NHTSA urges consumers who have vehicles that are included in the safety recall to have their vehicles serviced promptly,” NHTSA said in a statement to AutoInformed.
The Ford Escape recall in question covers 2001 through 2004 V6 models with a safety defect that causes the gas pedal to remain depressed after the driver lifts off. Mazda also recalled similar Tribute models – 217,000 from the 2001-2006 and 2008 model years. Presumably, Mazda faces fines as well, but maybe not. (Read AutoInformed on More than 640,000 Ford Escape, Mazda Tribute SUVs Recalled for Unintended Acceleration after NHTSA Opens Defect Probe)
The recall was forced when the National Highway Traffic Safety Administration opened an unintended acceleration investigation during July of 2012 covering 2001 through 2004 Ford Escape and Mazda Tribute SUVs after receiving 99 reports of unintended acceleration from owners. At least one fatality and nine injures are alleged in multiple accidents. Sixty-eight stuck throttle reports are from Ford Escape owners; thirty-one reports are from owners of Mazda Tributes.
“We are absolutely committed to addressing potential vehicle issues and responding quickly for our customers. We take the safety of our customers seriously and continuously evaluate our processes for improvements. While we are confident in our current processes for quickly identifying and addressing potential vehicle issues, Ford agreed to this settlement to avoid a lengthy dispute with the government,” Ford said in a prepared statement sent to AutoInformed.
Mazda said it was “not aware of any activity on this involving Mazda at this time,” when queried by AutoInformed.
Toyota also paid a $17.35 million NHTSA fine for its well publicized unintended acceleration safety defects, in a case that resulted in Congressional hearings and allegations that NHTSA was nothing but a “lapdog” of the auto industry. An embarrassed NHTSA has been more vigilant enforcing the regulations since then.