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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.

Mini might build a sedan because it's running out of shapes

Rumors suggest we could soon see a Mini with a trunk to haul your junk. Autocar cites unnamed insiders who claim the sedan is part of the brand's plan for upmarket growth. There's even a possibility the new model could use the Riley moniker in reference to the Elf (pictured above) from the 1960s, which was a Mini with a tiny trunk. The Mini sedan would use BMW's front-wheel-drive platform that underpins the X1 and Clubman and might share the wheelbase and frontend styling with the Clubman as well, according to Autocar. Mini's execs think the four-door would perform especially well in North America and China, where there's less demand for hatchbacks. Ralph Mahler, vice president of Mini's product management, hinted at the possibility of the four-door to Autocar. "For example, in Asia and the US, the sedan segment is very big. This is very interesting to us, of course," he said. Mahler admits that many people don't know about the Mini-based vehicles with trunks from the '60s, like the Riley Elf, so it would be hard to market the new model on that heritage. This could be the perfect time to add a Mini sedan to the lineup, and it might not be a completely new idea for the brand under its BMW stewardship; a rumor from 2012 shows that Mini's bosses considered a four-door at least once before. The company launched new versions of its Hardtop, Convertible, and Clubman, and even added four-door and all-wheel-drive versions of the Hardtop to further blur the lines between that car, the Clubman, and the Countryman. The next-generation Countryman crossover should debut later this year, and the brand reportedly cancelled the Superleggera Vision roadster and Rocketman compact, as Mini has chosen to go big with its new models and its lineup breadth. There are only so many versions of a hatchback a company can make, and the short-lived Mini Coupe wasn't exactly a huge success. If Mini is going to try a new body style, a sedan actually makes some sense, even if we'll probably prefer the look and practicality of the hatches. Related Video:

BMW profit of $2.7B is down as automaker invests to keep luxury lead

Despite selling 6.6-percent more vehicles - a record by volume - and posting higher revenues in the second quarter of 2013, BMW Group's profit of 2.07 million euros ($2.75 billion) is down 8.8 percent from last year. Investments in new technology (e.g. the new i3) and personnel, in addition to a competitive market, are to blame, BMW states. But the automaker remains committed to its fiscal targets for 2013, which, Chairman of the Board of Management of BMW AG, Norbert Reithofer, says will be "on a similar scale to 2012."
The BMW brand's sales performance in the first half of the year, which increased by 7.7 percent to 804,258 vehicles delivered, was good enough for it to maintain its lead in the luxury market, narrowly beating Audi, which delivered 780,510 vehicles, Automotive News reports. Mercedes-Benz delivered 694,433 vehicles to cement third place.