BMW to pay $3 Million for Untimely Reporting of Safety Defects

The National Highway Traffic Safety Administration (NHTSA) announced that BMW of North America, LLC has agreed to pay $3 million in civil penalties in response to the agency’s assertion that the automaker failed to comply with requirements of the National Traffic and Motor Vehicle Safety Act that it report safety defects and noncompliances to the federal government in a timely manner:

Without NHTSA making any formal findings with respect to BMW NA’s possible violations of the Safety Act as to the timeliness of its actions in certain recalls in 2010, including, but not limited to, the issues explored in Information Requests and other information sought by NHTSA in TQ10-006 and BMW NA’s responses thereto, BMW NA shall, in order to resolve the dispute, pay the United States a civil penalty in the sum of $3 MILLION and 00/100 ($3,000,000.00(US)) (pursuant to the Safety Act, 49 U.S.C. § 30165.) BMW NA shall make this payment in one lump sum payment by electronic funds transfer to the U.S. Treasury, no later than Thirty (30) days following the execution of this Agreement.

Federal law requires all auto manufacturers to notify NHTSA within five business days of determining that a safety defect or noncompliance exists and to promptly conduct a recall. NHTSA’s examination of 16 BMW recalls issued in 2010 found evidence of a number of instances where the automaker failed to report safety defects to the agency in accordance with federal law. In addition to the $3 million payment, BMW of North America, LLC and its parent company Bayerische Motoren Werke AG agreed to make internal changes to its recall decision-making process to ensure timely reporting to consumers and the federal government in the future.

BMW Recalls

Below are the 16 BMW recalls:

1. Certain model year 2010 X5 AND X6 Sport Activity Vehicles manufactured between December 14, 2009 and December 16, 2009: In the upper right area of the windshield, bonding may be insufficient over a length of approximately 50 centimeters. In the case of a rollover, the stability of the roof could be affected, increasing the risk of injuries.
2. Certain model year 2009-2010 7-Series and model year 2010 BMW 550i Grand Turismo vehicles: These vehicles failed to comply with the requirements of Federal Motor Vehicle Safety Standard No. 110 “Tire Selection and Rims.” The vehicles were equipped with a tire pressure label indicating that the vehicle’s seating capacity is 5 passengers when the actual seating capacity is 4 passengers. The tire size, tire pressure, and vehicle capacity weight on the label are correct.
3. Certain model year 2010 X5 M SAV vehicles: These vehicles failed to comply with the requirements of Federal Motor Vehicle Safety Standard No. 108, “Lamps, Reflective Devices and Associated Equipment.” These vehicles were equipped with side marker lamps, but not the power supply cables leading to the lamps. As a result, the side marker lamps do not illuminate.
4. Certain model year 2011 X5 and X6 SAV passenger vehicles manufactured from April 1 through May 8, 2010: The tire label does not conform to the requirements of Federal Motor Vehicle Safety Standard No. 110, “Tire Selection and Rims.” The vehicles are equipped with 20-inch wheels, but the label states that the vehicles were equipped with 19-inch wheels and the stated tire pressure is incorrect for the equipped wheels. Improper tire inflation can result in premature tire failure or reduced vehicle handling performance, either of which can increase the risk of crash.
5. Certain model year 2008-2011 1-Series vehicles: In a crash of sufficient severity, deployment of the front pre-tensioner and load-limiter occurs. The insulation around the pre-tensioner could ignite.
6. Certain model year 2007 and 2008 BMW G 650 X Country, G 650 X Challenge, and G650 X Moto motorcycles manufactured from November 29, 2006 through May 19, 2008: Over time, the roll gear pin’s mounting attachment could break. If this occurs, it would be possible for fragments of the attachment to become trapped between the driver chain and the rear sprocket. The rear wheel could lock up, possibly resulting in a crash.
7. Certain model year 2008 and 2009 F650 and F800 GS motorcycles manufactured from September 27, 2007 through March 30, 2009: The driver chains may not have been produced to specification. As a result, over time the drive chain could break. If the broken chain becomes trapped between the rear wheel and the frame, the rear wheel could lock up, possibly resulting in an accident.
8. Certain 2005 through 2007 R 1200 GS Adventure motorcycles manufactured from December 7, 2005 through September 26, 2007: The fuel tank front attachment bolts can work loose, allowing the bolts to come into contact with the fork leg if the handlebar is turned a significant amount. This could limit the travel range of the handlebars, which could affect handling and maneuverability of the motorcycle, increasing the risk of a crash.
9. Certain model year 2007 through 2009 R 1200 and K 1200 Series motorcycles manufactured from August 2006 through May 2009: Due to the current routing of the front brake lines, it is possible that during riding the brake lines could be under strain. If the strain and vibrations therefrom are significant, the brake line could split and start to develop a leak. If this goes unnoticed, and the brake fluid reservoir runs empty, the front brakes could fail, increasing the risk of a crash.
10. Certain 2005 through 2009 R 1200 RT police motorcycles manufactured from April 2005 through September 2009: The bracket which supports the audible signaling device can break, possibly allowing the signaling device to fall from the vehicle and onto the road. This could become an obstacle for other drivers, which may result in a crash.
11. Certain 2010 and 2011 5-Series and 5-Series Gran Turismo passenger vehicles manufactured from January 12 through July 1, 2010: The vehicles fuel sensor withing the fuel tank can become wedged against the tank. If this occurs, the fuel gauge would display a larger amount of fuel than was actually in the tank. If the tank became empty, the vehicle could stall, increasing the risk of a crash.
12. Certain model year 2004-2010 5-Series, 6-Series, and Model year 2002-2008 7-Series vehicles: A check valve of the brake vacuum pump may leak a small amount of lubricating oil. Over time, this could result in contamination of the brake booster. Power assist brake performance could be adversely affected. In extreme cases, there could be a complete loss of power assist braking, increasing the risk of a crash.
13. Certain model year 2005-2011 motorcycles: The bearings could be subject to corrosion. This could lead to reduced movement of the link lever, which could affect the handling of the motorcycle, increasing the risk a driver may lose control of the motorcycle and crash.
14. Certain 2008 through 2010 F 650 GS motorcycles manufactured from January 11, 2008, through December 8, 2009: A washer may interfere with the front disc brake fasteners’ torque. As a result, over time, a fastener or multiple fasteners could become loose, allowing the brake disc to become loose, increasing the risk of crash.
15. Certain model year 2008 X5 SAVs with 6-cylinder engines manufactured from November 1, 2007 through August 31, 2008: Due to a manufacturing process fault, the fuel pump was not produced to specifications. Under some conditions, the fuel pump’s commutator could experience and increase of wear, which could lead to pump malfunction and engine stalling, creating a potential for a crash resulting in personal injury or death.
16. Certain model year 2008-2011 X5 SAV, X6 SAC and model year 2011 5-Series Gran Turismo, and 7-Series vehicles: BMW notified NHTSA that these vehicles fail to comply with the requirements of Federal Motor Vehicles Safety Standard No. 110, “Tire Selection and Rims for Motor Vehicles.” The tire label includes a recommended cold tire inflation pressure and tire size designation for a spare tire. These vehicles are equipped with “run-flat” tires, and, according to BMW, neither have nor need a spare tire.

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