Ford to replace rear cameras in new recall, take $270 million charge

Ford Motor declared on Friday its intention to recall 169,000 vehicles in the United States to replace rearview cameras and update software. To address this recall, the company is taking na charge of $270 million.

It was the latest in a series of recalls for rear camera-related recalls by the No. 2 U.S. automaker in recent years.

In May, the Detroit-based automaker issued a recall for 422,000 vehicles in the United States due to potential rearview camera display failures, which followed a previous global recall in January involving 462,000 vehicles. Several vehicles have experienced multiple recalls for the identical issue.

The National Highway Traffic Safety Administration said losing the rearview camera image could reduce the driver’s rear visibility, increasing the crash risk.

On Friday, Ford (NYSE:F) announced its plan to replace rearview cameras and update software in certain vehicle models, including 2020-2023 Explorer and Aviator models, 2020-2022 Corsair models, 2022-2023 Transit vans, 2018-2021 Navigator models, and 2021 Bronco models.

In a report submitted to the Securities and Exchange Commission, Ford stated that the combined expenditure for camera replacements and software updates was roughly estimated at $270 million.

In its latest recall, Ford reported a total of 3,486 warranty claims related to rear camera failures. Additionally, the company documented two minor accidents resulting from these issues, but fortunately, there were no reported injuries.

Since 2021, the NHTSA has been investigating whether Ford delayed a recall 2020 involving 620,000 vehicles due to a rear camera issue, and if the number of vehicles recalled was sufficient.