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Mercedes reaches $20 million settlement with federal auto safety agency Mercedes reaches $20 million settlement with federal auto safety agency
(32 minutes later)
Mercedes-Benz has agreed to pay $13 million to the nation’s top highway safety regulator to resolve an investigation into how the luxury German automaker handled recalls on defective cars. Mercedes-Benz has agreed to pay $13 million to the nation’s top highway safety regulator to resolve an investigation into how the luxury German automaker handled recalls on defective cars.
The company has also faces $7 million in additional penalties if it doesn’t meet the terms of a settlement with the government. The company has also faces $7 million in additional penalties if it doesn’t meet the terms of a settlement with the government.
The National Highway Traffic Safety Administration began the investigation that led to the settlement last year. The agency concluded that Mercedes missed deadlines in the recall process on multiple occasions. The U.S. National Highway Traffic Safety Administration began the investigation that led to the settlement last year. The agency concluded that Mercedes missed deadlines in the recall process on multiple occasions.
“The agency’s reporting requirements help ensure that consumers are protected and given important information about how to get recalls repaired,” said James Owens, NHTSA’s acting administrator. “The agency’s reporting requirements help ensure that consumers are protected and given important information about how to get recalls repaired,” said James C. Owens, NHTSA’s acting administrator.
“These laws are critical to ensure NHTSA’s ability to provide oversight, and we expect manufacturers to follow their legal obligations to the agency and to consumers in carrying out safety recalls.” “These laws are critical to ensure NHTSA’s ability to provide oversight, and we expect manufacturers to follow their legal obligations to the agency and to consumers in carrying out safety recalls,” he said.
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Robert Moran, a spokesman for Mercedes’ American operation, MBUSA, said the company did not believe it did anything deliberately wrong. Robert Moran, a spokesman for the company’s U.S. operation, MBUSA, said Mercedes did not believe it had done anything deliberately wrong.
“But unfortunately we missed some deadlines in informing the agency of the measures we had taken in fulfilling their requirements,” Moran said in an email. “We agreed to resolve this matter in an effort to answer NHTSA’s questions and move forward. In all cases, however, MBUSA had announced the recalls, provided consumers with information and launched the recalls as soon as possible.”“But unfortunately we missed some deadlines in informing the agency of the measures we had taken in fulfilling their requirements,” Moran said in an email. “We agreed to resolve this matter in an effort to answer NHTSA’s questions and move forward. In all cases, however, MBUSA had announced the recalls, provided consumers with information and launched the recalls as soon as possible.”
NHTSA’s investigators looked at how Mercedes handled recalls between 2016 and 2018, in which time it reported 101 safety-related defects or problems complying with federal rules.NHTSA’s investigators looked at how Mercedes handled recalls between 2016 and 2018, in which time it reported 101 safety-related defects or problems complying with federal rules.
In six of those cases NHTSA found that Mercedes failed to mail notices to customers within 60 days, a deadline set by federal rules — overshooting by 20 days in one case. The agency found dozens of other paperwork issues and questioned how well a Mercedes vehicle lookup tool worked. In six of those cases, NHTSA found that Mercedes failed to mail notices to customers within 60 days, a deadline set by federal rules — overshooting by 20 days in one case. The agency found dozens of other paperwork issues and questioned how well a Mercedes vehicle lookup tool worked.
The settlement requires Mercedes to have quarterly oversight meetings with NHTSA. The settlement will remain in force for at least a year.The settlement requires Mercedes to have quarterly oversight meetings with NHTSA. The settlement will remain in force for at least a year.
Jason Levine, the director of the Center for Auto Safety, said he was glad to see the settlement but that NHTSA ought to be doing more to routinely monitor recall programs. Jason Levine, director of the Center for Auto Safety, said that he was glad to see the settlement but that NHTSA ought to be doing more to routinely monitor recall programs.
“One can only hope that this is the beginning of a renewed effort by the government to remember that its job is to ensure compliance with the law by car manufacturers and to use all of the enforcement tools at its disposal to do so,” he said.“One can only hope that this is the beginning of a renewed effort by the government to remember that its job is to ensure compliance with the law by car manufacturers and to use all of the enforcement tools at its disposal to do so,” he said.
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