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NHTSA slaps BMW with $40M fine for slow Mini recall

BMW is on the hook for a $40-million fine after the National Highway Traffic Safety Administration slapped the automaker over not recalling Minis that failed to meet minimum side-impact crash standards. The civil penalty from NHTSA concerns 2014 and 2015 Mini Cooper hatchback models that "failed a crash test designed to determine whether the vehicle met crash-protection minimums," the government agency said in a press release issued this week. An October 2014 test revealed the first problem, and the Mini was subsequently retested in July, only to fail again and finally prompt a recall of more than 30,000 cars. But according to NHTSA's investigation that was opened in October, BMW waited too long to issue a recall after it knew the cars did not meet standards and bring them into compliance with more energy-absorbing materials installed by Mini dealers. This is the second time NHTSA slapped BMW with a major penalty, following a $3-million fine back in 2012 failing to report recalls of its cars and motorcycles. "For the second time in three years, BMW has been penalized for failing to meet that obligation," NHTSA Administrator Mark Rosekind said in the release. "The company must take this opportunity to reform its procedures and its culture to put safety where it belongs: at the top of its priority list." In a separate release issued this week, BMW Group said it, "is committed to further improving its recall processes to better serve its customers," and that the company, "respects the role of NHTSA and looks forward to working with them to develop solutions for the future." National Highway Traffic Safety Administration fines BMW $40 million for failing to meet safety requirements Fine is auto company's second since 2012 WASHINGTON – The U.S. Department of Transportation's National Highway Traffic Safety Administration has imposed a $40 million civil penalty and a series of performance requirements to automaker BMW North America for a series of violations of the Motor Vehicle Safety Act and NHTSA regulations. Under terms of a Consent Order issued to BMW, the company acknowledges that it violated requirements to issue a timely recall of vehicles that did not comply with minimum crash protection standards, to notify owners of recalls in a timely fashion, and to provide accurate information about its recalls to NHTSA. NHTSA imposed a $3 million civil penalty to BMW in 2012 for similar violations.

BMW recalls 2016 7 Series because airbags might not deploy

The Basics: BMW will recall 6,110 units of the 2016 7 Series, including versions of the 740 and 750 models with production dates from July 1, 2015, to December 11, 2015. The Problem: The luxury sedans have an airbag control module that could randomly reset because of an electrical short. If a driver has an accident while the system is resetting, then the airbags might not deploy. Injuries/Deaths: None reported. The Fix: Dealers will replace the air bag control module. If You Own One: The recall will begin on May 16. Related Video: RECALL Subject : Air Bags may not Deploy due to Residue on Module Report Receipt Date: MAR 25, 2016 NHTSA Campaign Number: 16V173000 Component(s): AIR BAGS Potential Number of Units Affected: 6,110 All Products Associated with this Recall Vehicle Make Model Model Year(s) BMW 740LI 2016 BMW 750LI 2016 BMW 750LXI 2016 Details Manufacturer: BMW of North America, LLC SUMMARY: BMW of North America, LLC (BMW) is recalling certain model year 2016 740Li, 750Li, and 750Lxi vehicles manufactured July 1, 2015, to December 11, 2015. The affected vehicles have an air bag control module that may randomly reset due to an electrical short circuit as a result of residual metallic particles from the manufacturing process. CONSEQUENCE: In the event of a crash while the air bag module is resetting, the air bags may not deploy, increasing the risk of occupant injury. REMEDY: BMW will notify owners, and dealers will replace the air bag control module, free of charge. The recall is expected to begin May 16, 2016. Owners may contact BMW customer service at 1-800-525-7417. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Hyundai, BMW in plant talks with Mexican officials

BMW and Hyundai may be joining the rush for the border that has already seen Nissan, Honda and Mazda begin factory construction in Mexico, while Ford and General Motors have both made significant investments in their Mexican facilities. BMW's interest in Mexico has been apparent for some time, and while we'd heard grumblings about Hyundai's move into Latin America some time ago, the last we heard about it was in 2009.
This new move, reported by Bloomberg, doesn't get specific on which models will be produced south of the Rio Grande, and as neither automakers' spokespeople responded to the business site's request for statements, all we really have to go on are the statements of Mexico's Economy Minister, Ildefonso Guajardo: "I cannot talk for them, but I think that starting 2014 we'll have new announcements. At least for one." Which manufacturer that will be remains anyone's guess, although judging by all the recent scuttlebutt that's been going around, the smart money seems to be on BMW. We'll stay with this one.