WASHINGTON, D.C. -

Not conducting a recall in a timely manner according to regulators cost another automaker more than $17 million.

The National Highway Traffic Safety Administration and Ford reached an agreement regarding the recall of 423,634 Ford Escapes from the 2001 through 2004 model years equipped with 3.0L V6 engines and speed control.

According to federal documents, NHTSA first opened a preliminary evaluation of these units to investigate incidents involved the potential failure of the throttle to return to idle when the accelerator pedal has been released.

In the original recall notice from NHTSA dated last July, inadequate clearance between the engine cover and the speed control cable connector could result in a stuck throttle when the accelerator pedal is fully or almost-fully depressed. Investigators determined this risk existed regardless of whether or not speed control (cruise control) was used.

“A stuck throttle may result in very high vehicle speeds and make it difficult to stop or slow the vehicle, which could cause a crash, serious injury or death,” NHTSA said.

The recall notice indicated Ford was to notify owners and dealers were to repair the vehicles by increasing the engine cover clearance, free of charge. The safety recall was expected to begin on, or before, Aug. 6 of last year because parts were expected to be available by the middle of that month.

However, NHTSA said in documents dated June 28 of this year that the agency “has the potential claim that Ford violated the Safety Act, including regulations thereunder by not timely notifying NHTSA and the owners, purchasers and dealers of the safety defect.

“Ford denies that it has violated the Safety Act or its implementing regulations,” NHTSA continued in the document available here. “It is the mutual desire of NHTSA and Ford to administratively resolve the civil penalties relating to the timeliness of Ford’s action lead to the recall through the binding agreement in order to avoid a protracted dispute and possible litigation.”

As a result, Ford paid a lump sum penalty of $17.35 million to the U.S. Treasury; money NHTSA said went into the government’s coffers last Friday.

NHTSA continued in the document, saying “Upon receipt of payment, the Secretary of Transportation, by and through the Administrator of NHTSA … this agreement does not release Ford from civil or criminal liabilities, if any, that may be asserted by NHTSA or any other government entity.”

When Auto Remarketing reached out to the Blue Oval on Thursday, Ford safety communications manager Kelli Felker said, “We are absolutely committed to addressing potential vehicle issues and responding quickly for our customers.

“We take the safety of our customers seriously and continuously evaluate our processes for improvements. While we are confident in our current processes for quickly identifying and addressing potential vehicle issues, Ford agreed to this settlement to avoid a lengthy dispute with the government,” Felker continued.

Past Fines and Industry Reaction

The hefty price Ford paid equals what Toyota agreed to settle with NHTSA earlier this year.

Back in January, Toyota settled with the agency by agreeing to pay a $17.35 million fine. Since May 2010, Toyota has paid $66.15 million in fines to NHTSA stemming from the much-publicized recalls over floor mats and unintended acceleration.

NHTSA online records show this is the first time Ford has had to pay a fine to the agency since Nov. 13, 2001. And that amount was just $12,500.

“NHTSA’s record-setting fine charged to Ford is sending a loud message that it will not tolerate foot dragging when it comes to recalls that could cause harm to consumers,” Edmunds.com senior analyst Michelle Krebs said. “Any consumer who owns a 2001 to 2004 Ford Escape should take it to a dealer to have the work done that was outlined in the July 2012 recall if they have not done so already.”

A pair of analysts from Kelley Blue Book approached reaction to the Blue Oval’s latest penalty from a similar position.

KBB senior analyst Karl Brauer said “The NHTSA ruling against Ford not only shows an increasing need for automakers to issue recalls, but issue them in a timely manner. NHTSA will not tolerate an automaker dragging its feet.”

Fellow KBB senior analyst Alec Gutierrez added, “Ford remains committed to providing consumers with high quality products despite the fact they were hit with a more than $17 million fine due to the timing of a recall on the previous generation Escape. 

“As with anything else, it takes time to diagnose and assess these issues,” Gutierrez continued. “While NHTSA believes Ford was not as quick to act as they should have been, the automaker assessed the problem and issued a recall to ensure those owners in an older Escape could feel comfortable that their vehicle will remain safe to drive for years to come.”

Nick Zulovich can be reached at nzulovich@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.