The National Highway Safety Commission (NHSC) has fined Ford Motor Co. upwards of $17 million after the automaker took too long to recall almost half a million Ford Escape SUVs last year, reports the Los Angeles Times.
Ford and the NHSC agreed to the settlement deal of $17.35 million in order to avoid the possibility of litigation over the 2012 recall of 423,634 Ford Escapes and Mazda Tributes with V-6 engines with models years from 2001 to 2004.
The recall was issued because of a problem with the throttle that could get stuck in the open position and lead to spontaneous acceleration. One person has died and nine have been injured in crashes related to the problem.
The NHSC claims the Ford did not notify dealers and owners of the problem in a timely manner; a provision written into the National Traffic and Motor Vehicle Safety Act. Ford claims that it did not violate the safety act, but choice to avoid litigation with the settlement.
In 2012, Toyota was hit with the same heavy fine after recalling defective vehicles too slowly.
Parrish Law Firm, PLLC works with northern Virginia residents who have suffered injuries because of defective vehicles or products in order to help them gain fair compensation. Contact us today at 703-906-4229 or fill out a free case consultation form.