Justice Department investigating Ford's process to certify emissions compliance
Ford CFO Bob Shanks on the company’s strong first-quarter earnings.
The Department of Justice is investigating the process Ford Motor Co. uses to certify its compliance with federal emissions laws, the carmaker said in a federal filing on Friday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 11.21 | +0.20 | +1.82% |
The Dearborn, Michigan-based company previously said it hired an outside law firm to investigate the matter. At the time, Ford said the probe is not centered on the use of products that purposefully manipulate federal emissions tests, but rather whether the calculations used were faulty.
After identifying potential issues, the firm planned to first examine the 2019 Ranger then progress to other vehicles.
In a statement in February, the Environmental Protection Agency said it takes "the potential issues seriously and are following up with the company to fully understand the circumstances."
While Ford has not yet been charged with any criminal activity, the fines for such a violation could be significant. In January, Fiat Chrysler agreed to pay over $800 million to resolve claims from the DOJ that it employed illicit technology to bypass emissions laws.
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The investigation comes as Ford advances work on an $11 billion restructuring effort that has resulted in changes in its South American and Russian operations, as well as layoffs in Europe and the U.S.
The company reported better-than-expected first quarter earnings on Thursday. CEO Jim Hackett said Ford was "pleased with the progress and the optimism" that the results bring.