Bavarian Motor Works (BMW) is facing criminal liability following an investigation in South Korea. Investigators concluded that the company concealed a high fire risk in its vehicles and failed to alert owners. BMW was fined significantly.
Reason for the Fine on BMW
The Ministry of Land, Infrastructure and Transport of South Korea requested the prosecution to investigate the German automaker BMW, the statement was filed on Monday.
The South Korean Ministry imposed a fine of $10 million on BMW for the delayed recall of 22,670 vehicles. The team conducting the company's research since August found defects, the engine cooling system was deemed unreliable, coolant leaked onto the engine, leading to fires in the engine compartment.
BMW on Fire
Only this year, preliminary data shows 41 cases of BMW car fires have been registered.
The manufacturer had to recall 1.64 million vehicles worldwide due to this issue. Also, the company's stock fell by 12% over the past ten months. A viral video of a burning car emerged on the internet, garnering millions of views, leaving BMW no choice.
BMW's reputation was at stake, prompting the Korean branch to publicly apologize to all owners and agree to cooperate with the investigative department.
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BMW faces criminal charges and a fine not only for the delayed recall of a batch of vehicles but also for concealing the issue under the guise of minor defects.
Due to a delayed recall and alleged attempts to conceal defects that caused a series of car fires, BMW has been fined $9.98 million.
This was stated by the Ministry of Land, Infrastructure, and Transport. Measures were taken immediately after the conclusion of the Korean Transportation Safety Authority, which conducted a state investigation into BMW-related car fires.
In its report, South Korea stated that BMW must pay a fine for the delayed recall of a batch of 172,000 vehicles. The fine is set at $9.98 million.
BMW Forced to Recall 172,000 Vehicles
The case materials mention defects and shortcomings that led to a series of fires in the engine compartment of BMW vehicles.
The case materials also mention a malfunction in the exhaust gas cleaning system in BMW diesel vehicles, which caused 52 fires in late November. This compelled the company to recall a batch of 172,080 vehicles and issue apologies.
The BMW saga from Dow Jones is far from over.
