### Ford Motor Company Hit with $165 Million Fine Over Recall Failures

Ford Motor Company has agreed to a substantial financial penalty, amounting to $165 million, in relation to charges that it failed to adhere to federal recall requirements. This figure represents the second-largest auto penalty ever levied by the National Highway Traffic Safety Administration (NHTSA).

The penalty includes an initial payment of $65 million and comes as part of a settlement with NHTSA. The agency accused Ford of failing to submit recall reports on time and noted inaccuracies in some of the reports that were filed. “The total civil penalty amount of $165 million is second only to the Takata airbag consent order in the agency's 54-year history,” the NHTSA said.

The fine follows a lengthy investigation into Ford’s handling of defective rollover safety cameras in several of its models, including the widely popular F-150 trucks and Explorer SUVs. The NHTSA reported receiving 15 complaints from users regarding the cameras showing blank screens. Fortunately, Ford has stated that no injuries or fatalities have been linked to these defects.

NHTSA Deputy Administrator Sophie Shulman emphasized the importance of timely and accurate recalls to ensure road safety. "NHTSA is committed to ensuring manufacturers comply with the laws designed to keep our roads safe. When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable," she said.

As part of the settlement, Ford is also subject to a three-year consent decree. This will require the company to follow recommendations from an independent third-party overseer. Ford agreed to this decree as an administrative solution, despite disagreeing with NHTSA's findings.

In recent years, Ford has faced numerous quality-control issues, which have significantly impacted its financial performance. Just earlier this year, the company saw a sharp decline in its stock value after reporting disappointing quarterly earnings, which were attributed to rising warranty expenses. Analysts from Barclays highlighted investor frustration due to the persistence of these warranty challenges.

Ford CEO Jim Farley has indicated that addressing these quality-control issues is a priority for the company. While most of these issues concern products manufactured before 2021, Farley pointed out that Ford has made notable progress, as evidenced by the company's notable improvement in J.D. Power's "initial quality" report.