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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 recalls 30K Hardtops to improve side-impact protection

Mini is recalling 30,456 units of its two-door models because they don't conform to federal side-impact requirements for the rear seat passengers. According to the documents submitted to the National Highway Traffic Safety Administration (here as a PDF), this includes 15,653 examples of the 2014-2015 Mini Cooper Hardtop, 14,782 units of the 2014-2015 Mini Cooper S Hardtop, and 21 of the 2015 Mini John Cooper Works Hardtop (pictured above). Those with production dates between December 2013 and March 2015 are affected, the automaker reports in a statement to Autoblog. According to NHTSA, the agency tested a 2015 Cooper and Cooper S Hardtop on July 1 and 2, but the S didn't meet one of the impact requirements. The analysis showed that rear passengers in these vehicles were potentially in greater danger in a crash. Upon further research, the government and Mini found more models potentially affected. The automaker isn't aware of any reports of accidents or injures from this problem. To rectify the situation, dealers will add more energy-absorbing material in the space between the rear interior panels and the exterior of the hatchbacks, which will take around four hours. The campaign to fix them will begin on Sept. 12. RECALL Subject : Side Impact Crash Worthiness/FMVSS 214 Report Receipt Date: JUL 17, 2015 NHTSA Campaign Number: 15V450000 Component(s): STRUCTURE Potential Number of Units Affected: 30,456 All Products Associated with this Recall Vehicle Make Model Model Year(s) MINI COOPER 2014-2015 MINI COOPER S 2014-2015 MINI JOHN COOPER WORKS 2015 Details Manufacturer: BMW of North America, LLC SUMMARY: BMW of North America, LLC (BMW) is recalling certain model year 2014-2015 MINI Cooper and MINI Cooper S Hardtop 2 Door vehicles and 2015 MINI John Cooper Works Hardtop 2 Door vehicles. The affected vehicles do not meet the side impact performance requirements for the rear seat passengers. As such, these vehicles fail to comply with Federal Motor Vehicle Safety Standard (FMVSS) number 214, "Side Impact Protection." CONSEQUENCE: If the side impact performance requirements are not met, rear seat passengers may be at a higher risk of injury during a crash. REMEDY: MINI will notify owners, and dealers will install additional energy absorption material between the rear interior side panels and the exterior vehicle body, free of charge. The recall is expected to begin September 12, 2015. Owners may contact MINI customer service at 1-866-825-1525.

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.