Safety issues and automotive recalls go hand in hand and it's vital for automakers to promptly issue recalls when deemed necessary. Fortunately, there's a government oversight body assigned to make sure that happens. The National Highway Traffic Safety Administration not only investigates consumer safety concerns but also works directly with automakers to organize recalls, among other things. However, when an automaker does not conduct recalls properly, it will pay a price. Just ask Mercedes-Benz USA.
According to the NHTSA, the automaker has just signed a $20 million settlement with the government agency to resolve an investigation opened in 2018. The NHTSA's investigation involved learning more about how Mercedes handled various recalls, including those related to the Takata airbag scandal.
A total of 288,779 model year 2010-2017 Mercedes vehicles were equipped with potentially lethal Takata airbags, among them the C-Class, E-Class, and GLK-class (later rebranded as the Mercedes GLC-Class). The report focused on the automaker's recall reporting to customers. In short, affected owners were not notified fast enough and Mercedes didn't act as quickly as it should have to begin those recalls. In addition, the NHTSA had concerns about the Mercedes' VIN lookup online tool for owners that allowed them to see whether their vehicles were recalled or not.
"Safety is NHTSA's top priority, and the agency's reporting requirements help ensure that consumers are protected and given important information about how to get recalls repaired," said NHTSA Acting Administrator James Owens. "These laws are critical to ensure NHTSA's ability to provide oversight, and we expect manufacturers to follow their legal obligations to the agency and to consumers in carrying out safety recalls."
As part of the settlement, Mercedes-Benz USA will pay an up-front payment of $13 million, with an additional $7 million deferred penalty if certain "specific conditions" are not satisfied in a timely manner. Mercedes must also meet with the NHTSA once every business quarter for a year to discuss its recall operations.