"Failure to Recall on Time"... Ford Faces 230 Billion KRW Fine Bomb

American automaker Ford has been fined up to $165 million (approximately 230 billion KRW) for failing to timely recall vehicles with defective rearview cameras in the United States.

According to Bloomberg News on the 15th (local time), the U.S. National Highway Traffic Safety Administration (NHTSA) imposed the fine on Ford for not recalling vehicles with rearview camera defects in a timely manner.

Of the $165 million fine imposed by NHTSA, Ford must pay $65 million immediately. A fine of $55 million will be withheld until NHTSA determines whether Ford has complied with the order. The remaining $45 million will be used for developing safety data analysis systems and other purposes. This is the second-largest fine ever imposed by NHTSA.

Ford agreed to pay the astronomical fine. In a statement, Ford expressed its commitment to continuously improving safety and regulatory compliance. Bloomberg forecasted, "This fine will further complicate Ford's efforts to prevent rising vehicle warranty costs that burden profits." Ford faced difficulties, including large losses in its electric vehicle division due to weakening demand, as revealed in its third-quarter earnings report released last month.

This action comes three years after NHTSA launched an investigation into Ford's recall process for more than 600,000 vehicles?including pickup trucks, sport utility vehicles (SUVs), and vans?related to rearview camera defects in 2020. Although no deaths or injuries caused by the rearview camera defect have been reported, NHTSA investigated the timeliness and scope of the recall actions and compliance with reporting requirements.

Sophie Shulman, Deputy Administrator of NHTSA, said in a statement, "If manufacturers do not prioritize the safety of the American public and fulfill their obligations under federal law, NHTSA will hold them accountable."