BMW is the latest car manufacturer to be penalized by US regulators.
The luxury carmaker has been hit with a $40 million fine for failing to promptly report crash-testing problems on its Mini Cooper brand of vehicles.
The automotive giant admitted that it did not meet minimum crash protection standards, failed to notify owners on time, and did not provide sufficient information to the NHTSA about recalls.
In a statement BMW North America confirmed that it entered into a Consent Order with the NHTSA, resolving issues related to its execution of a MINI noncompliance recall campaign.
As part of the agreement BMW will make an immediate $10 million cash payment and 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.”
There is also an additional $20 million in the form of deferred penalties if the company fails to comply with the order.
The Consent Order will remain in place for two years subject to the NHTSA’s right to extend for an additional year.
NHTSA Administrator Mark Rosekind, said:
“The requirement to launch recalls and inform consumers in a timely fashion when a safety defect or noncompliance is discovered is fundamental to our system for protecting the traveling public. This is a must-do,”
BMW said in a statement that it is “committed to further improving its recall processes to better serve its customers.” Adding: “BMW NA respects the role of NHTSA and looks forward to working with them to develop solutions for the future.”