Ford Motor Company has agreed to pay a $165 million penalty to settle charges from 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 is related to Ford’s handling of defective rollover safety cameras on some of its popular models, such as the F-150 trucks and Explorer SUVs. Although there were complaints about blank screens on the cameras, Ford stated that no injuries or fatalities were associated with the issue.
The NHTSA emphasized the importance of timely and accurate recalls to ensure the safety of consumers on the roads, with Deputy Administrator Sophie Shulman stating that manufacturers must prioritize public safety and comply with federal laws. Ford will also operate under a three-year consent decree that requires it to follow recommendations from an independent third party overseer.
Ford has faced quality-control issues in recent years, which have impacted its financial performance. The company’s stock took a hit in July after missing quarterly earnings expectations, partly due to increased warranty expenses. CEO Jim Farley has acknowledged the challenges and stated that the company is working to address quality concerns, with improvements reflected in its jump in J.D. Power’s “initial quality” report. Despite disagreements with NHTSA’s findings, Ford is pleased to resolve the dispute and focus on improving its products and processes.
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