Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

South Korea to fine BMW $10 mn over engine fires response

 

A worker fixes a BMW logo on a new car at the company’s plant in Regensburg, southern Germany, on March 13, 2014/AFP

Seoul, South Korea, Dec 24 – South Korea said Monday it will fine German automaker BMW 11.2 billion won ($10 million) for allegedly dragging its feet in recalling cars with faulty engines linked to dozens of engine fires.

BMW vehicles bursting into flames made headlines in South Korea earlier this year, with local media reporting more than 40 cases in 2018 and some parking lots refusing to accept BMW cars over fears they could catch fire.

The auto giant recalled more than 170,000 vehicles in South Korea with a faulty exhaust gas recirculation (EGR) cooler, which the firm blamed for the fires.

In August, it announced a recall for Europe and some Asian countries — including South Korea — of 480,000 cars affected by the same problem, before expanding it to more than one million additional diesel cars two months later.

“BMW announced earlier that it had become aware of the connection between the faulty EGR cooler and the fire only on July 20 this year,” the South Korean transport ministry said in a statement, announcing the results of a five-month probe.

“But we discovered that… BMW’s German headquarters had already formed a special team in October 2015 tasked with solving the EGR cooler problem.”

In addition to the fine, the ministry will also ask prosecutors to investigate BMW for allegedly delaying acknowledgement of the issue on purpose and dragging its feet on the recall.

In South Korea, six out of 10 imported cars are from Germany, with BMW selling nearly 39,000 in the first six months of this year, according to the Korea Automobile Importers and Distributors Association.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...