Ford Motor Company is facing one of the largest penalties in automotive history after failing to comply with federal recall requirements for faulty rearview cameras. The National Highway Traffic Safety Administration (NHTSA) has fined Ford up to $165 million for its delayed response to a widespread backup camera issue. This penalty highlights the importance of timely recalls under federal safety laws and serves as a critical reminder for automakers to prioritize consumer safety.
The Problem: Faulty Rearview Cameras
In 2020, Ford issued a recall for over 600,000 vehicles in the United States due to defective rearview cameras. Drivers reported that their backup camera screens intermittently went blank, creating a significant safety risk. The issue was traced back to faulty electrical conductivity within the camera’s printed circuit board, a part supplied by Magna Electronics. The defect caused the cameras to fail unpredictably, leaving drivers unable to see objects, pedestrians, or other vehicles behind them while reversing.
The following 2020 Ford models were impacted:
- F-Series (F-150, F-250, F-350, F-450, F-550)
- Explorer
- Mustang
- Edge
- Escape
- Expedition
- Transit
- Ranger
In addition, the following Lincoln models were also impacted:
- Corsair
- Nautilus
Given the prevalence of these models on the road, the scale of the defect posed a serious threat to public safety. Despite issuing the recall, Ford’s response time and compliance with NHTSA regulations fell far short of expectations.
NHTSA Investigation and Findings
The NHTSA launched an investigation in 2021, a year after Ford’s initial recall announcement. The agency’s inquiry sought to determine whether Ford delayed the recall and whether it followed proper reporting requirements under the National Traffic and Motor Vehicle Safety Act. NHTSA ultimately found Ford guilty of the following violations:
- Failure to Issue a Timely Recall: Federal law requires automakers to notify NHTSA and the public of any known safety defects promptly. Ford, however, delayed the recall, failing to act with the urgency required by law.
- Incomplete and Delayed Reports: Automakers are also required to submit quarterly reports on the progress of recalls. NHTSA determined that Ford did not submit these reports on time and failed to provide complete and accurate information regarding the recall process.
In response to the violations, NHTSA imposed a $165 million fine, marking it as the second-largest penalty in the agency’s 54-year history. The largest fine remains the $200 million penalty imposed on Takata, whose defective airbags caused over 30 deaths and hundreds of injuries worldwide.
How the Penalty Is Structured
Ford’s $165 million penalty is broken into three components:
- $65 Million Upfront Payment: Ford must immediately pay $65 million as part of the consent order.
- $55 Million Contingent Penalty: An additional $55 million will be imposed if Ford fails to meet the requirements outlined in the consent order over the next three years.
- $45 Million Investment in Safety: Ford is required to invest $45 million in advanced testing and safety initiatives, including building a specialized testing facility for low-voltage electronics, such as rearview cameras and implementing advanced data-tracking systems to monitor vehicle components using Vehicle Identification Numbers (VINs).
These measures are intended to ensure that Ford improves its recall processes, prevents future delays, and prioritizes consumer safety. Ford will also be subject to quarterly meetings with NHTSA to track its compliance and progress.
Impact on Ford’s Reputation
The $165 million penalty and the circumstances surrounding the recall have tarnished Ford’s reputation as a leader in the automotive industry. While no injuries or fatalities were reported as a result of the defective cameras, the failure to act promptly has raised concerns about Ford’s internal safety protocols.
NHTSA Deputy Administrator Sophie Shulman underscored the significance of the penalty, stating:
“Timely and accurate recalls are critical to keeping everyone safe on our roads. NHTSA is committed to ensuring manufacturers comply with the laws designed to keep our roads safe.”
How Consumers Can Protect Themselves
If you own one of the affected Ford or Lincoln models, it is important to ensure your vehicle has been repaired under the recall. Drivers can check their vehicle’s recall status by entering their Vehicle Identification Number (VIN) on Ford’s website or the NHTSA recall portal.
Here’s what you need to do if your vehicle is subject to a recall:
- Check for Recalls: Visit Ford’s website or the NHTSA portal to determine if your car is included.
- Contact Your Dealer: Schedule a repair appointment at an authorized dealership. Recall repairs are free of charge.
- Stay Informed: Follow up with Ford and check for updates regarding recall completion.
If you experience backup camera issues or other defects that are not addressed, you may have a lemon law claim under California’s Song-Beverly Consumer Warranty Act.
California Lemon Law and Your Rights
Under California law, consumers are protected when their vehicles suffer repeated defects that the manufacturer fails to repair. If your vehicle’s backup camera continues to malfunction despite multiple repair attempts, you may be eligible for compensation, including:
- A replacement vehicle
- A refund of your purchase price
- Coverage of legal fees
To qualify under the lemon law, the defect must substantially impair the vehicle’s safety, value, or use. Given the safety implications of a faulty backup camera, drivers experiencing this issue may have a strong case.
Why You Need a Lemon Law Attorney
Navigating a lemon law claim can be complex, especially when dealing with large automakers like Ford. An experienced California lemon law attorney can help you:
- Document Your Case: Gather evidence of repair attempts, communications with the dealer, and the impact of the defect on your vehicle’s safety and value.
- Negotiate with the Manufacturer: Attorneys can advocate on your behalf to secure fair compensation.
- Take Legal Action: If necessary, your attorney can file a lawsuit to enforce your rights under California law.
At Johnson & Buxton – The Lemon Law Guys, we specialize in helping California consumers hold automakers accountable. If you are experiencing backup camera issues or any recurring defect, we can evaluate your case and guide you through the process of filing a claim. If you believe your vehicle is a lemon, don’t wait—contact Johnson & Buxton – The Lemon Law Guys today for a free consultation. We’re here to help you get the resolution you deserve.
