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BMW agrees to pay $3 million fine over delayed recalls

Featured Posts, News | February 11th, 2012 by 13
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See update below with official BMW statement BMW of North America has agreed to pay a $3 million fine to settle U.S. government allegations that …

See update below with official BMW statement

BMW of North America has agreed to pay a $3 million fine to settle U.S. government allegations that it failed to promptly notify regulators about potential safety defects.

NTHSA says that BMW agreed to the civil penalty caused by 16 recall investigations in 2010.

The investigation found a number of instances where the automaker failed to report known safety defects and recalls within five days, as is required by federal law. BMW also agreed to make internal changes to their recall process to ensure timely reporting.

BMW agrees to pay $3 million fine over delayed recalls

BMWNA Official Statement

The US Motor Vehicle Safety Act requires manufacturers to notify the National Highway Traffic Safety Administration (NHTSA) within five business days of a safety defect being identified internally by a company. The NHTSA conducted a review of safety recalls filed by the BMW Group in calendar year 2010 and claimed that in some cases the company had exceeded the five-day notification limit. All cases, except for one, were related to BMW Motorcycles. However, despite the late filing, in every case where a defect was identified by the company a voluntary recall had been conducted.

BMW has agreed to pay the NHTSA a penalty of $3 million and modify its processes to prevent a reoccurrence.

Press Release

The National Highway Traffic Safety Administration (NHTSA) today announced that BMW of North America, LLC has agreed to pay $3 million in civil penalties in response to the agency’s assertion that the automaker failed to comply with requirements of the National Traffic and Motor Vehicle Safety Act that it report safety defects and noncompliances to the federal government in a timely manner.

“It’s critical to the safety of the driving public that defects and recalls are reported in short order,” said NHTSA Administrator David Strickland. “NHTSA expects all manufacturers to address automotive safety issues quickly and in a forthright manner.”

Federal law requires all auto manufacturers to notify NHTSA within five business days of determining that a safety defect or noncompliance exists and to promptly conduct a recall. NHTSA’s examination of 16 BMW recalls issued in 2010 found evidence of a number of instances where the automaker failed to report safety defects and recalls to the agency in accordance with federal law. As part of today’s settlement, BMW of North America, LLC and its parent company Bayerische Motoren Werke AG agreed to make internal changes to its recall decision-making process to ensure timely reporting to consumers and the federal government in the future.

In December 2010, NHTSA launched an investigation to determine when BMW first learned of defects and noncompliances related to several motorcycle and vehicle recalls and whether the company notified NHTSA in a timely manner. NHTSA’s investigation led the agency to believe that BMW had not fulfilled its obligation to report a known safety defect within five days, as is required under the law. The fines will be paid into the Treasury Department’s General Fund.

[Source: AutoNews ]

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  • Anonymous

    and what are those 10 instances and which cars were affected?

  • PHZ

    Instead give 60 BMW 5 series to the Federal Government as fleet cars!

  • BMW The Best

    Such incidents always have a negative impact on company’s image. A company like BMW shouldn’t have had such a problem.

  • Anonymous

    Probably all HPFP issues.  lol

  • Prussian

    5 days seems like too short an amount of time to figure out what exactly is wrong with a huge production run of cars. Seems likely to me that the ” Treasury Department’s General Fund ” fleeced BMW for a cool 3 mil

  • Albertg

    Stupid American prats. As if Americans can make cars themselves. Jealous Yankees are trying to punish us Gemans.

  • Albertg

    Stupid American prats. As if Americans can make cars themselves. Jealous Yankees are trying to punish us Gemans.

  • Guest

    so funny NTHSA received so many complaints way before 2010 about the HPFP problems and ignored it until the media got involved and forced BMW to do a recall.  NHTSA should compensate all those with the HPFP problems for ignoring HPFP and Brake recalls that BMW kept hiding and lying to everyone with the problem. 

  • Guest

    so funny NTHSA received so many complaints way before 2010 about the HPFP problems and ignored it until the media got involved and forced BMW to do a recall.  NHTSA should compensate all those with the HPFP problems for ignoring HPFP and Brake recalls that BMW kept hiding and lying to everyone with the problem. 

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  • http://pulse.yahoo.com/_GRB7XK4N73IFI4N64U2XTP6ATA TheLip

    So whatever happened to this recall , I have an X6 and never received any notice from BMW. I contacted my SA but he said they had not received anything from BMW.

    BMW Recalls 32,000 High-Horsepower Models for Fire Hazard
    http://wheels.blogs.nytimes.com/2011/10/31/bmw-recalls-32000-high-horsepower-models-for-fire-hazard/

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