Home Money & Business Business Ford to pay as much as $165 million in penalties to the U.S. government for delays in recall processes.

Ford to pay as much as $165 million in penalties to the U.S. government for delays in recall processes.

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Ford to pay as much as $165 million in penalties to the U.S. government for delays in recall processes.

Ford Motor Company is set to incur a fine of up to $165 million imposed by the U.S. government due to delays in executing a vehicle recall and for not providing precise information regarding that recall.

According to a statement released by the National Highway Traffic Safety Administration (NHTSA) on Thursday, this civil penalty marks the second-highest in the agency’s history of 54 years, surpassed only by the fine levied against Takata for defective airbag inflators.

The agency highlighted that Ford was tardy in initiating a recall for cars with malfunctioning rearview cameras and failed to provide comprehensive information to the NHTSA, a requirement under the federal Motor Vehicle Safety Act.

As part of a consent agreement with the agency, Ford will pay an immediate sum of $65 million, along with an additional $45 million designated for ensuring compliance with legal standards. A deferred amount of $55 million will also be part of the settlement.

Sophie Shulman, NHTSA’s Deputy Administrator, emphasized in the statement that timely and precise recalls are vital for the safety of all road users. She asserted that when car manufacturers do not prioritize public safety or fulfill their legal obligations, the NHTSA will ensure accountability.

The terms of the consent order stipulate that an independent party will monitor Ford’s adherence to recall standards for a minimum of three years. Moreover, the automaker is tasked with reviewing all recalls conducted in the past three years to confirm that all necessary vehicles have been recalled and to initiate new recalls if required.

In response, Ford announced plans to allocate the $45 million towards enhancing data analytical capabilities and establishing a new testing laboratory.

The company expressed appreciation for the opportunity to address the situation with the NHTSA and reaffirmed its commitment to continuously enhancing safety measures.