Toronto, Ontario — In this weekly Tuesday ticker, Ford Motor Company has agreed to pay a near-record $165-million penalty to the National Highway Traffic Safety Administration (NHTSA) for allegations of failing to quickly respond to recall measures; while Northvolt is reportedly considering the possibility of bankruptcy protections in the United States.
Fine finds
Ford Motor Company has agreed to pay a $165 million civil penalty in order to settle allegations from the NHTSA that the automaker failed to recall vehicles with defective rearview mirrors in a timely manner.
As noted by BNN Bloomberg, the recall in question is the second-largest fine ever levied by the NHTSA.
Bloomberg further noted that as part of the civil suit, Ford must pay a $65 million fine with an additional $55 million deferred until the NHTSA determines that the automaker has fulfilled the obligations of the consent order, the agency said in a statement last Thursday.
Additionally, Ford must also pay $45 million to develop a safety data analytics system alongside other safety compliance rules.
Ford will now review all of its recalls during the last three years to assess whether all affected vehicles have been called back. Furthermore, the automaker has agreed to provide the NHTSA with a monthly list of safety issues that it’s evaluating. The automaker will meet with agency officials every quarter to review and answer questions about the items on the list.
Ford announced in a statement that it remains committed to continuously improving its safety and compliance.
Bankruptcy battles
Reuters has reportedly learned from inside sources that Northvolt is “considering the possibility of bankruptcy protection in the United States.”
Within this, “Plan A is still a funding deal with investors that would save the company from such a step,” and talks are continuing “despite the talks becoming more difficult in recent weeks,” said the source.
If these negotiations fail, the company could seek bankruptcy protection under Chapter 11 in the United States.
While Northvolt did not directly comment on the information, it also did not deny it. “Since the beginning of the strategic review, we have constantly been discussing different options and that hasn’t changed throughout the process,” a spokesperson told Reuters. “We will communicate results once we have found a conclusion, while we continue the dialogue with our stakeholders.”
Within the last few months, Northvolt has experienced continued challenges, such as BMW cancelling an order due to delivery delays caused by production issues.
As a result, the company initiated a strategic review, announced cost-cutting measures and reorganized its management board.
