BMW, Mercedes fined in South Korea

BMW Korea was been fined KRW11.2bn (US$10m) by South Korea's Ministry of Transport in December for delaying the recall of faulty vehicles and for not disclosing the faulty parts responsible for dozens of engine fires on public highways in South Korea over the last year.

More than 40 BMW cars, mostly diesel-powered 5-series models, caught fire in South Korea in 2018, prompting the German automaker to eventually recall around 106,000 vehicles in August.

An investigation team comprising civilian experts and government officials found that the fires were caused by faulty exhaust gas recirculation (EGR) valves. BMW was ordered to replace these valves and to conduct further checks on the durability of the entire EGR system.

Separately, a court in South Korea fined Mercedes-Benz Korea a total of KRW2.8bn (US$2.5bn)last month for selling around 7,000 vehicles equipped with unauthorized parts in violation of the country's Clean Air Conservation Act and customs law. A company employee was also arrested and sentenced to eight months in jail for failing to remedy the situation after more than three years.

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