Daily Management Review

Daimler Under ‘$30 Million’ Penalty Agreement


Daimler Trucks North America failed to recall vehicles in time to “comply with reporting requirements”.

The “North American truck unit” of Daimler AG has come to an agreement of paying a “$30 million U.S. civil penalty” in order to resolve the “delayed recalls” related investigation which marks the “second time since late 2019” when the German auto manufacturer had agreed to pay the settlement amount got “a probe by U.S. auto safety regulators”.
The “National Highway Traffic Safety Administration”, in short NHTSA, reported that there was a failure on the part of the “Daimler Trucks North America” in recalling vehicles in time to “comply with reporting requirements” following facing a probe in “April 2018” which involved nearly “464,000 vehicles”. According to Reuters report:
“As part of the settlement, Daimler Trucks agreed to develop and implement an advanced data analytics program to enhance its ability to detect and to investigate potential safety defects as part of a two-year consent order that can be extended by NHTSA for one additional year”.
Moreover, as per the agreement there is a deferred penalty of “$15 million” which will have to be paid by Daimler in case of failure to “comply with the consent order”. According to Daimler Trucks it is maintaining its focus on “building safe, efficient and reliable commercial vehicles.... In this case, though there are no known accidents or injuries associated with any of the voluntary recalls.
“We appreciate the opportunity to summarily resolve this matter”.
Under the settlement agreement, Daimler will be meeting the NHTSA minimum once a month. While, the deputy administrator at the NHTSA, James Owens added:
“It’s critical that manufacturers appropriately recognize the urgency of their safety recall responsibilities and provide timely and candid information to the agency about all safety issues”.