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    

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

New York planning on direct purchase of Pfizer’s COVID-19 vaccines
New York planning on direct purchase of Pfizer’s COVID-19 vaccines
By Nikita Chaurasia

In recent developments, Governor of New York, Andrew Cuomo has reportedly issued a letter to the CEO of American drug maker Pfizer Inc., Albert Bourla, requesting for direct purchase of COVID-19 vaccine doses. Although the company is not bound to any...

Mayo Clinic Laboratories forms alliance with American Hospital Dubai
Mayo Clinic Laboratories forms alliance with American Hospital Dubai
By Nikita Chaurasia

In recent developments, Minnesota-based Mayo Clinic Laboratories and American Hospital Dubai are reportedly planning on entering a strategic alliance which is aimed at enhancing advanced laboratory diagnostic services in Dubai. Under the terms of th...

LTI, IBM extend global partnership to spearhead digital transformation
LTI, IBM extend global partnership to spearhead digital transformation
By Nikita Chaurasia

The New York-headquartered IBM Corp., with its global partner Larsen Toubro Infotech, an Indian global IT solutions & services company, are planning to extend their multi-year partnership, in a bid to enable companies to revolutionize the busines...

Algae cultivator Qualitas Health raises USD 10 million in funding round
Algae cultivator Qualitas Health raises USD 10 million in funding round
By Nikita Chaurasia

In recent developments, privately held food and nutrition company Qualitas Health Inc. has reportedly secured USD 10 million in venture funds, as it looks to broaden the reach of its plant-based protein and omega-3 business. The company was appraised...

China touts plans of launching national ETS to attain carbon neutrality
China touts plans of launching national ETS to attain carbon neutrality
By Nikita Chaurasia

According to reliable sources, the Chinese government is expected to launch the much anticipated national emission trade scheme (ETS) by mid-2021 as a part of the country’s efforts of achieving carbon-neutrality by the year 2060, through market...