German automaker BMW has been fined $40 million by the National Highway Traffic Safety Administration for failing to issue safety recalls in a timely manner to Mini owners. The fine, announced on Monday, caps a year of auto industry crackdowns by the Department of Transportation and the Environmental Protection Agency. Regulators have come down hard on the auto industry for problems ranging from air bag defects to cheating on emissions tests.
The MINI Cooper Hardtop was recalled for the same issue in December of 2014, prompting the NHTSA's investigation for non-compliance.
As part of the settlement, BMW will pay a $10 million fine to the NHTSA and also spend another $10 million to improve its internal processes and technologies for detecting possible safety issues. BMW must also put up another $20 million in abeyance until the NHTSA is satisfied that the company has completed its Consent Order. The settlement also includes an admission of guilt on BMW's part.
"The company responded that the vehicle was listed with an incorrect weight and would pass the test if conducted at the proper weight rating, but agreed to conduct a recall to correct the incorrect weight rating on the vehicle’s tire information placard and to conduct a voluntary service campaign, short of a recall, to add additional side-impact protection," NHTSA said in a statement.
Fiat Chrysler Automobiles NV, Honda Motor Co. and Japanese air bag supplier Takata Corp. are among auto companies receiving hefty fines levied by NHTSA for safety problems in recent months.
