Ford settles with NHTSA for $165 million over defective recall allegations

Ford Motor Company has agreed to pay a $165 million penalty to settle charges by the National Highway Traffic Safety Administration that it failed to comply with federal recall requirements. This is the second-largest auto penalty ever issued by the agency. The penalty stems from Ford’s handling of defective rollover safety cameras in some of its popular models, including the F-150 trucks and Explorer SUVs. Despite 15 complaints about blank screens on the cameras, Ford reported no injuries or fatalities associated with the recall. NHTSA Deputy Administrator Sophie Shulman emphasized the importance of timely and accurate recalls to ensure road safety. Ford will operate under a three-year consent decree and submit to oversight by an independent third party. The company disagreed with NHTSA’s findings but was pleased to settle the dispute. In recent years, Ford has struggled with quality-control issues, leading to a drop in stock value following quarterly earnings reports that cited a surge in warranty expenses. CEO Jim Farley has stated that the company is working to address these issues, with some progress reflected in a higher ranking in J.D. Power’s “initial quality” report. Farley attributes many of the quality-control issues to products made before 2021.

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