Ford hit with $165M penalty from NHTSA, second-highest in agency's history

Core Points - The National Highway Traffic Safety Administration (NHTSA) imposed a $165 million civil penalty on Ford for failing to timely recall vehicles with defective rearview cameras [1][2] - This penalty is the second-highest in NHTSA's 54-year history, consisting of an upfront payment of$65 million, with $55 million deferred and$45 million allocated for performance obligations [2][3] - Ford may not pay the full $165 million, as the$55 million is contingent on compliance with the consent order over the next three years [3] Company Actions - Ford has agreed to use the $45 million for investments in advanced data analytics, an information and document interface platform, and a new testing facility for rearview camera components [3] - The company has faced scrutiny for providing inaccurate information and failing to submit timely reports regarding recalls [5] - Ford expressed disagreement with NHTSA's assessment but is committed to improving safety and compliance [6][7] Recall Background - NHTSA opened an investigation in August 2021 after Ford recalled 620,246 vehicles in 2020 for rear camera issues, later expanding the recall by adding approximately 24,000 vehicles in March 2022 [4] - There have been no reported fatalities or injuries related to the recall that led to the consent order [5]