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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.

Jamaican bobsled team pushes a Mini around town to keep Olympic dream alive

PETERBOROUGH, England — The Jamaican bobsleigh team is used to training without snow, but the coronavirus lockdown has seen its male athletes resort to pushing a car around the streets of an English city to stay in shape, with an eye on Olympic qualification. Some residents of Peterborough have offered their help to Shanwayne Stephens and Nimroy Turgott as they push a Mini down the road, before realizing it is part of a new training regime to work around the closure of gyms in England. "We had to come up with our own ways of replicating the sort of pushing we need to do. So that's why we thought: why not go out and push the car?" Stephens, 29, told Reuters. "We do get some funny looks. We've had people run over, thinking the car's broken down, trying to help us bump-start the car. When we tell them we're the Jamaica bobsleigh team, the direction is totally different, and they're very excited." The couple said they had been inspired by the 1988 Calgary Winter Olympics men's bobsleigh team, immortalized in the 1993 film "Cool Runnings." But they said they aimed to qualify for the Beijing Winter Olympics in 2022 and then outperform the 1988 team, who did not officially finish the four-man bob competition after crashing. "Those guys set a legacy, and a movie came out of it. For me personally, I want to surpass that level, and even go beyond that," Turgott, 27, said. Turgott, who normally lives in Jamaica, has been staying with Stephens since January, and the pair had always planned to do summer training in Britain, albeit in gyms rather than on roads. "If you're able to do the same sort of training without the same equipment, then you should be able to achieve more with the right equipment," he said. The pair are focused on qualifying for Beijing 2022. While the woman's team competed for the first time in 2018 in Pyeongchang, South Korea, the men's team failed to qualify. "The last Olympics, we missed it by one slot. And now we are using that experience as our motivation moving forward," Turgott said.   Weird Car News MINI

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.