Feds: Daimler to Pay $30 Million for Being too Slow to Recall Trucks

Feds have accused Daimler Trucks North America LLC of failing to issue vehicle recalls in a timely fashion. Daimler is to pay a $30 million civil penalty.

The National Highway Traffic Safety Administration (NHTSA) announced that Daimler entered a consent order after federal investigators discovered that the manufacturer did not act promptly to issue vehicle recalls following safety defects. Daimler has agreed to pay $30 million for the failure to act upon the federal accusation.

This is a result of a two-year investigation that started in 2018. The investigation was regarding the scope and quickness of Daimler vehicle recalls. It involved approximately 464,000 vehicles.

“The company will develop and implement an advanced data analytics program to enhance its ability to detect and to investigate potential safety defects. The company will also improve its IT systems to collect potential safety information from its business units more effectively, and to report that information accurately to NHTSA.The company will also develop written procedures and conduct training for its employees on the recall and reporting requirements of the Vehicle Safety Act, take actions to ensure that its reporting to NHTSA is complete, and meet regularly with NHTSA to discuss potential safety issues,” was in an official NHTSA news release.

Daimler has also agreed to make multiple changes to the safety and reporting practices of the company.

Since this development, Daimler has come out with a statement on Thursday, saying that “though there are no known accidents or injuries associated with any of the voluntary recalls, we appreciate the opportunity to summarily resolve this matter and continue building safe, efficient and reliable commercial vehicles.”

The consent order to which Daimler agreed to states that the company has to pay $10 million upfront, to spend $5 million on projects with the goal of enhancing safety, and an additional $15 million deferred penalty. The last $15 million are to become payable only under specific circumstances.

Additionally, the consent order is set to last two years. However, it can be extended by an additional year if the NHTSA deems it necessary.

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