BMW fined $3 million after 2010 recalls
BMW have been fined $3 million for their poor timing when reporting 2010 recalls. The National Highway Traffic Safety Administration (NHTSA) have said that there were 16 instances of BMW recalls where they did not report the safety defects properly according to the rules and regulations stated by federal law.
Not reported quick enough
The NHTSA announced that BMW North America have agreed the fine of $3 million. They found that BMW did not report safety defects to the appropriate body quick enough.
David Strickland – “Reported in short order”
David Strickland, the administrator of the NHTSA has said that timing of reported safety defects are very important and that all manufacturers should follow the procedures. He said “It’s critical to the safety of the driving public that defects and recalls are reported in short order. NHTSA expects all manufacturers to address automotive safety issues quickly and in a forthright manner.”
Five days maximum
Where did BMW go wrong? According to federal law, all auto manufacturers should inform the NHTSA within five business days from when a safety defect has been discovered which justifies a recall of the vehicle.
BMW to change procedure
BMW have since released a statement saying that they will alter their procedure when recalling vehicles to ensure that the same mistake does not occur again. Timely reporting is essential for the future and important so that the company is not fined such a large amount in the future.
Failure on motorcycles
The whole incident seems to be related to motorcycles. An investigation was launched into defect notifications upon their motorcycles back in 2010 which led to recalls. Again BMW were not complainant with federal law and failed to report the instances within five days. The fine mainly relates to this failure according to BMW.
BMW themselves have released a statement confirming this saying “BMW issued 16 recalls a range of BMW cars, SAVs and motorcycles. The vehicles involved included 1 Series, 5 Series, 5 Series Gran Turismo, 6 Series, 7 Series and X5 and X6. A number of motorcycle models were also recalled. In all but one case where NHTSA claimed that BMW filed late were related to motorcycles.”
All fines will be paid into the Treasury Department’s General Fund.
The maximum penalty for this type of offence is $16.375 million. Toyota has been previously fined $16.05 million where millions of Toyota vehicles were recalled.