BMW hit by $10 million fine in South Korea over engine fires crisis

source : Nettech News

The Ministry of Land, Infrastructure and Transport said Monday that it will also refer the case to prosecutors to decide whether criminal charges are necessary.

BMW’s (BMWYY) crisis in South Korea erupted over the summer as dozens of reports came in of its vehicles bursting into flames. The German automaker said the fires were the result of a problem with the cars’ exhaust systems and began checking vehicles that could be at risk.

But a panel set up by the government to investigate the matter found that BMW tried to hide the issue and then took too long to recall the 172,000 affected vehicles, according to the transport ministry.

In a statement Monday, BMW said it launched the recall “without delay when the root cause of the fire was identified.” The statement didn’t address the allegation that the automaker initially tried to cover up the problem.

BMW highlighted that the government investigation reached a similar conclusion to the company on the cause of the fires: defects with the vehicles’ exhaust gas recirculation module, part of a system that channels some fumes back into the engine to reduce pollution.

Nearly 40 BMWs caught fire in South Korea over the summer, but no deaths or injuries have been reported as a result. At one point, the government ordered local authorities to ban people from driving any of the potentially fire-prone cars that hadn’t been brought in for checks.

The company said Monday that it’s “working hard to complete the recall measure in South Korea as soon as possible” and apologized “for the anxiety and inconvenience that the customers have experienced.”

BMW was the second most popular brand of imported cars in South Korea last year, selling nearly 60,000 vehicles, according to the Korea Automobile Importers & Distributors Association. The German company sold more than 2 million vehicles worldwide last year.

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from Nettech News http://bit.ly/2rS1QaL