BMW Issued a $20 Million Penalty

Dec. 29, 2015

Dec. 29, 2015—The National Highway Traffic Safety Administration (NHTSA) has issued a $20 million civil penalty against BMW North America for federal safety violations tied to its mini cooper recall, according to a report by Automotive Fleet.

In 2014, a Mini 2 Door Hardtop Cooper failed a crash test designed to determine whether the vehicle met crash-protection minimums. BMW failed to issue a recall to correct the problem, causing the NHTSA to conduct an investigation and issue a fine.

In addition to the fine, the NHTSA has also placed a series of performance requirements on BMW as part of a consent order. The agreement requires that BMW admits it failed to comply with all federal reporting requirements in a timely matter.

The $20 million fine includes $10 million due in cash and a requirement that the company spend at least $10 million to meet the order’s performance obligations. An additional $20 million in penalties will come if BMW fails to comply or commits other safety violations.

“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 released statement, according to the report. “The Consent Order NHTSA has issued not only penalizes this misconduct, it requires BMW to take a series of steps to remedy the practices and procedures that led to these violations.”