Mercedes-Benz USA to pay a $20M penalty for inadequate vehicle recall

By Nikita Chaurasia  Date: 2019-12-20

Mercedes-Benz USA to pay a $20M penalty for inadequate vehicle recall

Mercedes-Benz, the German global automobile company & a division of Daimler AG recently consented to pay a whopping amount of $20 million as a civil penalty over its management of U.S. vehicle recalls.

Reportedly, the German automaker has been inappropriately operating U.S. vehicle recall program as per a government document. The company has been inadequate with the timelines and in updating customers regarding vehicle safety defects.

Under the terms of the settlement, Mercedes-Benz will be liable to pay an amount of $13 million. In case the company does not comply with the agreement and there are additional violations, it will have to pay the remainder amount of $7 million fine as penalty.

The National Highway Traffic Safety Administration (NHTSA) has claimed that Daimler failed to notify vehicle owners in a timely fashion in some of the recalls. The company did not submit all reports and also didn’t launch at least 2 recalls in a timely fashion.

James Owens, Acting Administrator of NHTSA was reportedly quoted saying in a press release that laws are critical to ensure ability of NHTSA’s to provide oversight and the organization expects the manufacturers to follow legal obligations to the agency and to consumers for carrying out safety recalls properly.

The National Highway Traffic Safety Administration examined 101 safety-defect recalls from the records from 2016 till 2018. The investigators found out that in some instances, the German automaker has missed the 60-day deadline to notify vehicle owners, did not inform NHTSA within the required 5 day time limit and has also failed to upload required documents to the web.

The agency also found that online tool of Mercedes-Benz’s that allows customers to look up for their vehicle identification numbers to check for recalls, did not always work.

Source Credits:https://www.ttnews.com/articles/daimler-pay-20-million-penalty-over-mercedes-recall-lapses

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

EV maker Rivian bags USD 2.5 Bn in a funding round led by Amazon, Ford

EV maker Rivian bags USD 2.5 Bn in a funding round led by Amazon, Ford

By Nikita Chaurasia

American electric vehicle maker Rivian Automotive LLC reportedly secured USD 2.5 billion in a funding round led by Amazon.com Inc, T. Rowe Price, D1 Capital Partners, and Ford Motor Co. In addition, the event also saw participation from Fidelity Man...

ICEA forms committee chaired by HP India MD to boost IT hardware sector

ICEA forms committee chaired by HP India MD to boost IT hardware sector

By Nikita Chaurasia

The India Cellular & Electronics Association (ICEA) recently announced the formation of a committee to promote manufacturing and exports of the IT hardware sector. The panel headed by Ketan Patel, HP India’s Managing Director, will set up a...

Amazon to stop on-site COVID-19 testing in U.S. warehouses this month

Amazon to stop on-site COVID-19 testing in U.S. warehouses this month

By Nikita Chaurasia

Amazon is reportedly planning to discontinue on-site Coronavirus testing for its warehouse employees in the United States. The retail giant confirmed slowing down the testing by 30th July and will only resume after receiving new guidelines change fro...

Ford partners with Oreo to develop special packaging for owner’s manual

Ford partners with Oreo to develop special packaging for owner’s manual

By Nikita Chaurasia

Ford Motor Company and American sandwich cookie Oreo have teamed up to create special Oreo Thins packages featuring the Ford Maverick pickup truck owner’s manual. The two companies have termed this scheme the “Oreo Thins Protection Progra...

Coca-Cola India to de-emphasize sugary drinks in sports sponsorships

Coca-Cola India to de-emphasize sugary drinks in sports sponsorships

By Nikita Chaurasia

Coca-Cola India Ltd. is reportedly planning to fade out its flagship ‘Coca-Cola’ brand from sports associations and is looking to pitch other products from its portfolio in the country. The decision has been made to reduce risks associat...