BMW hit with $40M fine for recall violations

Discussion in 'BMW' started by ALS, Dec 22, 2015.

  1. ALS

    ALS Super Moderator Staff Member

    U.S. auto-safety regulators imposed a penalty of up to $40 million on BMW North America for recall failures. The German automaker is the latest in a series of car companies that have violated federal safety rules.

    BMW agreed to the penalty in a National Highway Traffic Safety Administration consent order that involves an immediate $10 million fine, $10 million in spending to overhaul procedures and $20 million in deferred fines if the company fails to make changes.

    As part of the deal, the company admitted to violating U.S. regulations requiring prompt reporting of defects.

    The penalties revealed Monday stem from the company's failure to tell vehicle owners promptly of recalls and from its failure to fix a version of the Mini Cooper that failed a side-impact crash test. BMW makes the Mini brand.

    NHTSA will also impose an independent safety consultant to recommend changes to the automaker's recall compliance practices and monitor the company's performance for two years.

    The penalties come amid a litany of safety scandals in the auto industry. NHTSA has penalized General Motors and Fiat Chrysler over the last two years for their own failures to fix vehicles expeditiously and notify safety officials promptly of defects. Amid pressure on automakers, the agency has faced public scrutiny for its own failures to catch certain defects.

    BMW said in a statement that it "is committed to further improving its recall processes to better serve its customers" and that it "respects the role of NHTSA and looks forward to working with them to develop solutions for the future."

    The company did not respond to multiple requests seeking an interview.

    NHTSA's probe started with an investigation into BMW's failure to meet regulatory standards on side-impact crash protection with 2014 and 2015 Mini Cooper vehicles.

    Full Story
    http://www.usatoday.com/story/money...ty-administration-nhtsa-mini-cooper/77694762/
     
  2. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi Al:

    From BMWs own release on this very topic:

    BMW of North America Reaches Resolution With NHTSA on Investigation of Timeliness of a MINI Noncompliance Recall

    BMW of North America, LLC (BMW NA) today announced it has entered into a Consent Order with the National Highway Traffic Safety Administration (NHTSA) which resolves issues raised in NHTSA’s Special Order issued to BMW NA on September 28, 2015 in regards to its execution of a MINI noncompliance recall campaign. The Consent Order also includes an admission by BMW NA that it did not comply in a timely fashion with various reporting requirements under the National Traffic and Motor Vehicle Safety Act.

    Pursuant to the Consent Order, BMW NA has agreed to make a $10 million cash payment to NHTSA and to spend $10 million on enhancing internal processes and technologies to more rapidly detect emerging safety-related issues and developing increased measures to maximize recall completion rates. An additional $20 million shall be in the form of a deferred amount and held in abeyance, pending BMW NA’s satisfactory completion of the obligations in the Consent Order.

    BMW NA has also agreed to execute certain performance obligations to improve its recall execution and reporting processes and will work with a consultant to develop best practices to do so. The Consent Order will remain in place for two years subject to NHTSA’s right to extend for an additional year.

    The company is committed to further improving its recall processes to better serve its customers. BMW NA respects the role of NHTSA and looks forward to working with them to develop solutions for the future.
     
  3. some_other_dave

    some_other_dave Well-Known Member

    Any idea of what the recall was?
     

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