The National Highway Traffic Safety Administration (NHTSA) imposed a $165 million civil penalty on Ford as part of a consent decree, after determining the automaker failed to recall vehicles with defective rearview cameras in a timely manner.
The penalty, which is the second-highest ever issued by the agency in its 54-year history, involves an upfront payment of $65 million, with an additional $55 million deferred and $45 million for performance obligations, NHTSA said.
However, Ford may not end up paying the full $165 million total, because the $55 million will be held in abeyance subject to the carmaker's adherence to the terms of the consent order over the next three years.
Ford and NHTSA have agreed that Ford may use the remaining $45 million to invest in advanced data analytics, an information and document interface platform and a new testing facility to test rearview camera components.
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NHTSA in August 2021 opened an investigation after Ford in 2020 recalled 620,246 vehicles for a rear camera issue to determine whether the carmaker recalled the vehicles in a timely fashion. Ford expanded that recall in 2022 and in March, adding about 24,000 vehicles.
NHTSA said Ford provided inaccurate or incomplete information, did not submit timely quarterly reports for other recalls and did not fully comply with public availability of vehicle recall information.
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There are no fatalities or injuries related to the recall that led to the consent order.
"Timely and accurate recalls are critical to keeping everyone safe on our roads," NHTSA Deputy Administrator Sophie Shulman said in a statement. "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."
Ford said it disagreed with NHTSA's assessment, but is pleased to resolve the investigation.
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"We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continuously improving safety and compliance at Ford," the company said in a statement to FOX Business. "Wide-ranging enhancements are already underway with more to come, including advanced data analytics, a new in-house testing facility, among other capabilities."
Reuters contributed to this report.