- 11
- February
2012
When an auto maker learns of a safety defect or a noncompliance issue, they are given five business days to tell the National Highway Traffic Safety Administration and issue a recall. BMW failed to meet the requirements of that federal law in 2010 and was fined $3 million for their handling of the defective vehicles. In addition to the fine, the company agreed to change the way it handles defects in the future so the NHTSA and the public are informed in a timely manner.
The NHTSA investigated BMW because it believed that the company was not giving notice to consumer quickly enough. BMW issued 16 recalls last year for issues ranging from improper tire labels to defective fuel pumps. The NHTSA sought information about when BMW officials learned of each of these defects and how soon they communicated that information to consumers and the government. After finding that the company had violated the National Traffic and Motor Vehicle Safety Act, it pursued a civil action.
