Tue, Dec 25, 2018 - Page 10 News List

Seoul to fine BMW US$10m over slow response to fires


South Korea yesterday said it would fine German automaker BMW AG 11.2 billion won (US$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 this year.

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.

“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 Ministry of Land, Infrastructure and Transport 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,” it said.

It is also to ask prosecutors to investigate BMW for allegedly delaying acknowledgement of the issue on purpose.

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