The consent order says BMW must pay $10 million in cash, an additional $10 million on steps to comply with the order, and another $20 million if BMW doesn’t comply with NHTSA’s demands or commits further safety violations.
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Recall-related issues and failures have led US regulators to slap a $40 million fine on BMW, according to Reuters.
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BMW has also failed to promptly notify auto owners of the recall and did not provide accurate information on the incident to the USA authorities.
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German automaker BMW AG is now facing $40 million in penalties for safety violations.
The cap on civil penalties that can be levied by US auto safety regulators has tripled to $105 million under a the highway bill signed into law on December 4.
Extend the time that auto makers are required to pay for defect recalls from 10 years to 15 years and broaden the post-bankruptcy recall obligations of auto makers.
BMW said Monday that it has agreed to carry out steps to improve its recall and reporting processes and that it plans to work with a consultant to develop best practices to do so. NHTSA also learned that BMW had not launched the promised service campaign and found other violations tied to past recalls. This requirement stemmed from the fact that an NHTSA representative purchased a new vehicle with an open safety recall from a BMW dealer during the investigation.
On the other hand, NHTSA Administrator Mark Rosekind emphasized that it is a must for automakers to follow its requirements to launch recalls and notify consumers in a timely fashion upon discovery of a safety defect or non-compliance.
“NHTSA has discovered multiple instances in which BMW failed its obligations to its customers, to the public and to safety”, U.S. Transportation Secretary Anthony Foxx said in a statement.
In January, Honda Motor Co paid $70 million to the NHTSA in fines for failing to disclose death and injury reports.
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BMW’s Consent Order with the NHTSA stems from a failed September crash test of the MINI Cooper Hardtop S. Although the standard version of the hatchback passed the government’s crash tests, the sportier S model failed the side-impact portion of the NHTSA’s safety evaluation. The total penalty against the company is $175 million, although Fiat Chrysler can avoid much of it by complying with the agency’s demands.
