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

Published On Nov 15, 2024, 12:27 PM

Ford has been hit with a $165 million penalty by the NHTSA due to failures in issuing timely recalls for vehicles with defective rearview cameras. This penalty is significant, being the second-largest in NHTSA history. The penalty involves an immediate payment of $65 million, with $55 million held contingent on future compliance and an additional $45 million allocated for investments in safety improvements. Ford disputes the NHTSA's findings but acknowledges the resolution of this matter.

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The penalty and the ongoing issues with vehicle recalls could negatively impact Ford's reputation and financials in the short term. Ongoing compliance costs and potential further scrutiny from regulators may also impede operational flexibility.

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