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-   -   BMW Fined $3 Million for 16 Recalls in 2010 (http://forum.e46fanatics.com/showthread.php?t=903437)

tim330i 02-14-2012 02:28 PM

BMW Fined $3 Million for 16 Recalls in 2010
 


BMW North America has agreed to pay $3 million in civil penalties to The National Highway Traffic Safety Administration (NHTSA). The penalties are the result of slow reporting of defects to government in a timely manner. For the safety of the driving public the NHTSA requires that automakers report defects and recalls to them within 5 days. Seems BMW was caught sitting on their hands when it came to knowing about issues with their cars.

Major BMW recalls that Fanatics readers are probably aware of -

E46 Tail light recall for 2002-2005 325i, 325xi, 330i and 330xi

BMW Recalls 130,000 N54 powered 335i, 135i, 535i, Z4 and X6er

BMW North America and BMW AG (Germany) have implemented new policies as a result of this fine to ensure proper handling of issues as the come up in the future. Basically they don't want to get caught not taking care of problems again.

Quote:

In December 2010, NHTSA launched an investigation to determine when BMW first learned of defects and noncompliances related to several motorcycle and vehicle recalls and whether the company notified NHTSA in a timely manner. NHTSA’s investigation led the agency to believe that BMW had not fulfilled its obligation to report a known safety defect within five days, as is required under the law. The fines will be paid into the Treasury Department's General Fund.
Source - NHTSA

What other recalls can you think of that BMW might have been slow to report?

JJR4884 02-14-2012 02:29 PM

hmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmrearsubframetim?hmmm mmmmmmmmmmmmmmmmmmmmmm

E46Enthusiast20 02-14-2012 06:19 PM

Quote:

Originally Posted by JJR4884 (Post 14082756)
hmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmrearsubframetim?hmmm mmmmmmmmmmmmmmmmmmmmmm

This. It's a shame that many dealerships didn't even know this recall was what it was. Every BMW around me told me no.

tim330i 02-14-2012 08:36 PM

Quote:

Originally Posted by JJR4884 (Post 14082756)
hmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmrearsubframetim?hmmm mmmmmmmmmmmmmmmmmmmmmm

I thought that was class action, not recall?

Tim

Big Rick 02-14-2012 08:51 PM

I was going through my BMW paperwork the other day and ran across a letter saying that they were aware of the subframe problems and would let us know. They never did. Mine doesn't have an issue but I am still p*ssed.

BMW sure does make a great machine... But they suck as a manufacturer in other respects. If you screw up... OWN IT!

xixixi 02-14-2012 09:32 PM

I'd turn a blind eye to every past mistake to fix the current mistakes. NOTE TO BMW, STOP BUILDING Piles of SH!T. Since 05, they only fail. The deserve 100x that amount. :censor: Pathetic, stop selling out!

MJLavelle 02-14-2012 09:42 PM

Too bad the penalty was not more severe. They probably sold $3 million worth of marketing gear (Hats, T-Shirts, etc) last year. These penalties should be painful, so they will think twice before doing it again.
As far as recalls, they are a fact of life in today's compressed design to manufacture schedules. The truth is, they can't test things thoroughly enough, and computer simulations can not account for subpar materials and poor workmanship. Too many variables at work there. But you can penalize them harshly for not reacting properly.

JJR4884 02-14-2012 11:38 PM

Quote:

Originally Posted by tim330i (Post 14083927)
I thought that was class action, not recall?

Tim

Tim, you don't have to sign your name, I know who you are. With that being said, i'll reserve my right to remain silent before i get PK'ed :eeps:

you are right tho, it was a class action... however it should have been a recall :idea:

EDIT: a real fvcking expensive recall :rofl:

sonnybobiche 02-15-2012 01:25 AM

Apparently nobody here has ever taken an economics class. Fines like these eventually just get passed on to the consumer in the form of higher prices/reduced quality. BMW already did their part by paying for these problems to be fixed, but the American government wants to squeeze a bit more out of them. And you cheer it on...

Gheybe 02-15-2012 01:28 AM

They should do a recall on the convertible top. Every single one of them fails. At some point.


Tim

TerraPhantm 02-15-2012 11:01 AM

Quote:

Originally Posted by sonnybobiche (Post 14084585)
Apparently nobody here has ever taken an economics class. Fines like these eventually just get passed on to the consumer in the form of higher prices/reduced quality. BMW already did their part by paying for these problems to be fixed, but the American government wants to squeeze a bit more out of them. And you cheer it on...

But there's also an upper limit to how much they can increase the costs. If they go up too much, they'll lose customers to the competition.

E46Enthusiast20 02-15-2012 11:03 AM

http://forum.e46fanatics.com/showthread.php?t=888568

I feel bad for who's m3 this ever was.

If this was my m3 i would take bmw to court and have them buy me another one!

MJLavelle 02-15-2012 11:35 AM

Quote:

Originally Posted by sonnybobiche (Post 14084585)
Apparently nobody here has ever taken an economics class. Fines like these eventually just get passed on to the consumer in the form of higher prices/reduced quality. BMW already did their part by paying for these problems to be fixed, but the American government wants to squeeze a bit more out of them. And you cheer it on...

In that economics class, did they teach you about the costs reputational loss, for forcing customers to fight to get defects fixed, including having to file class action lawsuits to get defects fixed? Because that costs long term loss of sales, brand defection, etc. And no, they did not do their part by paying to get these things fixed, at least not willingly. They lied, delayed, failed to report defects, attempted to shirk their responsibilities, and were finally ordered by a federal judge to address some of these defects in class action lawsuits. They also spent millions on legal defense to fight these recalls, most of which had to be reported to the NHTSA by consumers, and investigated by the government, which costs taxpayer money, rather than reporting what they already knew from their own service records. That is why they were fined. All of this costs more than stepping up and doing the right thing. Maybe they will teach you that next semester.

Matt330xi 02-15-2012 04:39 PM

Anybody remember Fight Club ??

Quote:

Narrator: A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall? Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one.

Woman on plane: Are there a lot of these kinds of accidents?
Narrator: You wouldn't believe.
Woman on plane: Which car company do you work for?
Narrator: A major one.

:thumbup:

Matthew@wltsautosports 02-15-2012 04:41 PM

Airbags

bimmerfan08 02-16-2012 12:44 PM

I would have to say the VANOS issues in E46 M3s...

G-Hots 02-16-2012 01:29 PM

Quote:

Originally Posted by Matt330xi (Post 14086532)
Anybody remember Fight Club ??


:thumbup:

yea i remember that! so true!

Premature wear on FCABs, Trunk wiring harness breaking and opening up, convertible top problems, SUBFRAME, tail light ground issues, EXPANSION TANK & cooling system, vanos seals, CCV to name a few problems BMW

cmajor009 02-16-2012 04:49 PM

Smg pump anyone ?

Matt330xi 02-16-2012 05:50 PM

Im sorry but BMW can't recall everything under the sun that goes wrong with these cars. There is a point where it goes from manufacturer defect to wear and tear item. I can see the fuel system issue on the 2007 engine of the year recipient the almighty N54 .

Talking about the CCVV, i got 160,000 miles out of mine. And FCAB, just stay away from pot holes.


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