South Korea’s transport ministry mentioned it will file a criticism in opposition to German luxurious carmaker BMW with prosecutors for allegedly delaying recollects and concealing defects that led to a number of engine fires within the nation this 12 months.
The ministry additionally fined BMW 11.2 billion received ($9.96 million) over “delayed recollects”.
A defective exhaust remedy system in BMW diesel automobiles precipitated 52 car fires in South Korea as of end-November, prompting the corporate to recall 172,080 fashions and situation an apology.
The federal government mentioned an investigation confirmed defective design in BMW’s Exhaust Gasoline Recirculation (EGR) unit sparked the fires, including it would determine whether or not to order extra recollects.
BMW denied design defects and mentioned it recalled fashions in a well timed method.
“We launched into recall measures with out hesitation on the time when the foundation explanation for fires was confirmed,” BMW’s Korean unit mentioned in assertion on Monday.
BMW mentioned it first acknowledged in July this 12 months the defective EGR system inflicting fires, however the authorities mentioned BMW was conscious of the issue since 2015 when it created a activity drive to deal with the difficulty.
BMW introduced the recall of 106,317 automobiles in July, however the automaker didn’t recall a further 65,763 automobiles that use the identical engines till October, the federal government mentioned.
The speed of BMW automobiles catching fires was zero.14 p.c in South Korea, much like zero.19 p.c in Germany and zero.17 p.c in the UK, and decrease than these in the USA and China, South Korea mentioned.
BMW’s South Korean gross sales fell practically 10 p.c to 47,569 automobiles from January to November from a 12 months earlier. This in contrast with the imported automobile market’s 13 p.c progress and Hyundai Motor’s three p.c gross sales achieve.
BMW is the second-biggest imported automobile maker after Mercedes Benz in South Korea.
German automakers have in recent times achieved breakneck gross sales progress in South Korea, lengthy dominated by Hyundai, fueled by their power in fuel-efficient diesel automobiles and the nation’s free commerce take care of the European Union and the USA.
($1 = 1,124.1000 received)
(Reporting by Hyunjoo Jin; Modifying by Himani Sarkar)
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