BMW to pay $10 million to South Korea
December 24, 2018 | Investopaper
German automaker BMW, which made headlines for its vehicle having faulty engines causing dozens of engine bursts earlier this year, will be fined by South Korea.
South Korea will fine the company around $10million for allegedly delaying in recalling faulty cars bursting into flames. More than 40 cases were reported in 2018 and as a result, with a fear of catching fire parking, lots refused to accept cars.
According to Korea Automobile Importers and Distributors Association, South Koreans prefer cars from Germany with six out of 10 imported cars coming from Germany. Around 39,000 BMW cars were sold in the first six months of 2018.
The company blamed its faulty EGR cooler for the flames and recalled more than 1.7 lakh vehicles in South Korea. Although BMW claimed to know about the problem of the faulty cooler on July 20 this year, South Korean transport ministry said that it discovered that BMW’s German headquarters had already known about the problem and formed a special team in October 2015.
So, along with the fine, the ministry will also ask prosecutors to investigate BMW for allegedly delaying to address the issue and recalling its vehicles.
