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 after the Takata airbag fiasco and the Takata airbag consent order.
“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.”
This action follows an investigation [RQ21-002]* that found Ford 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. (read AutoInformed.com on: Ford Recalls Defective Rear-view Cameras on 620,246 Vehicles)
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,” NHTSA said.
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.
Ford Motor 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.”
NHTSA is also 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.
*RQ21-002
- On September 23, 2020, Ford Motor Company (Ford) filed a non-compliance recall report under 49 CFR Part 573 (NHTSA Recall No. 20V-575), recalling 620,246 Model Year (MY) 2020 Ford F-150, F-250, F-350, F-450, F-550, Explorer, Mustang, Transit, Expedition, Escape, Ranger and Edge, and Lincoln Nautilus and Corsair vehicles for a noncompliance with Federal Motor Vehicle Safety Standard (FMVSS) 111, Rear Visibility.
- Ford’s recall described the noncompliance as insufficient electrical conductivity within the printed circuit board (PCB) internal to the camera leading to intermittent rearview camera operation. The supplier of the cameras was Magna Electronics.
- According to Ford’s chronology in the Part 573, during the period February – April 2020, Ford identified and monitored warranty claims pertaining to intermittent or inoperative rearview cameras. Ford reviewed supplier product changes, focusing on changes introduced by the supplier in the October-November 2019 time frame. The Part 573 stated that the issue was brought to Ford’s Critical Concerns Review Group (CCRG) for review on May 12, 2020.
- On July 7, 2020, NHTSA’s Vehicle Research and Testing Center (VRTC) informed the Office of Defects Investigation (ODI) of a trend of MY 2020 Escape vehicles with rearview camera malfunctions. ODI contacted Ford the next day, providing five Vehicle Owner Questionnaires (VOQs) alleging inoperative rearview cameras.
- On July 15, 2020, Ford met with NHTSA to discuss the rearview camera issue. In a subsequent August 24, 2020 meeting, ODI and NHTSA’s Office of Vehicle Safety Compliance (OVSC) met with Ford to discuss the recall status and additional VOQs. Ford presented rate and scope data for many of its MY 2020 products during the August 2020 meeting indicating high failure rates for certain models.
- This RQ is being opened to investigate both the timeliness and scope of Ford’s rearview camera recall (20V-575), and Ford’s compliance with reporting requirements.
NHTSA Fines Ford $165M for Flouting Recall Law
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 after the Takata airbag fiasco and the Takata airbag consent order.
“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.”
This action follows an investigation [RQ21-002]* that found Ford 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. (read AutoInformed.com on: Ford Recalls Defective Rear-view Cameras on 620,246 Vehicles)
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,” NHTSA said.
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.
Ford Motor 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.”
NHTSA is also 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.
*RQ21-002