In February, Ford launched an investigation into whether flaws in an internal mathematical model may have caused it to overstate gas mileage and understate emissions from a wide range of vehicles after employees raised concerns that the mathematical calculations used to translate test results into the mileage and emissions data, were incorrect. It is this information that is sent to the EPA.
Today’s disclosure follows a positive first-quarter earnings report on Thursday – with Ford beating market expectations by showing a $1.1 billion net profit while in the midst of its massive global restructuring.
“As previously reported, the Company has become aware of a potential concern involving its U.S. emissions certification process,” the filing said. “We voluntarily disclosed this matter to the U.S. Environmental Protection Agency and the California Air Resources Board on February 18, 2019, and February 21, 2019, respectively. Subsequently, the U.S. Department of Justice opened a criminal investigation into the matter. In addition, we have notified a number of other state and federal agencies. We are fully cooperating with all government agencies. Because this matter is still in the preliminary stages, we cannot predict the outcome, and we cannot provide assurance that it will not have a material adverse effect on us.”
Ford also repeated on Friday in its filing the concern does not involve the use of defeat devices, reports Reuters. The automotive company had also pointed this out in February.
Mathematical calculations
The matter seems to involve issues related to road load estimations, including analytical modeling and physical track testing. The mathematical calculations used to translate test results into the mileage and emissions data were incorrect. It is this information that was sent to the EPA in February. At the same time, Ford hired outside experts to investigate its fuel economy and emissions certification procedures.
“Our focus is on completing our investigation and a thorough technical review of this matter and cooperating with government and regulatory agencies,” Kim Pittel, Ford’s vice president of sustainability, environment and safety engineering, said in a statement, according to CNBC.
