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File photo used for representational purpose.
File photo used for representational purpose.

Mercedes-maker Daimler faces ire for not recalling its trucks swiftly

  • Daimler Trucks North America will pay $30 million to settle claims and will proactively develop a system to detect and investigate potential safety defects.

Daimler Trucks North America LLC agreed Thursday to pay a $30 million civil penalty to settle claims that the German automaker failed to recall vehicles in a timely fashion and comply with federal reporting requirements.

Under the settlement, Daimler Trucks will be required to “develop and implement an advanced data analytics program to enhance its ability to detect and to investigate potential safety defects," the National Highway Traffic Safety Administration said.

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The company will also be required to “improve its IT systems to collect potential safety information from its business units more effectively, and to report that information accurately to NHTSA," according to the agency.

“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," NHTSA Deputy Administrator James Owens said in a statement.

(Also read: Daimler Trucks and Linde partner for liquid-hydrogen refueling tech for trucks)

The settlement between Daimler and NHTSA will last two years, with the agency having the option to extend it for an additional year if warranted. The consent order requires Daimler to make an upfront payment of $10 million, to spend an additional $5 million on specific projects to enhance safety, and includes an additional $15 million deferred penalty that may become payable under specified circumstances.

“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 and continue building safe, efficient and reliable commercial vehicle," Daimler Trucks said in a statement.

The consent order stems from an investigation NHTSA opened in 2018 that covers Daimler Truck’s handling of seven recalls.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

  • First Published Date : 01 Jan 2021, 08:48 AM IST