E46Fanatics - View Single Post - BMW Fined $3 Million for 16 Recalls in 2010
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Old 02-15-2012, 11:35 AM   #13
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Join Date: Jul 2011
Location: Charlotte NC
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My Ride: 2001 BMW 330ci
Originally Posted by sonnybobiche View Post
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.
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