U.S. imposes $30 million penalty on Daimler for delayed truck recalls

FILE PHOTO: A sign showing the name of German truck maker Daimler is pictured at the IAA truck show in Hanover, September 22, 2016. REUTERS/Fabian Bimmer

WASHINGTON (Reuters) – Daimler AG’s North American truck unit has agreed to a $30 million U.S. civil penalty to resolve an investigation that found it failed to recall vehicles in a timely fashion and comply with reporting requirements.

The National Highway Traffic Safety Administration (NHTSA) said Daimler Trucks North America agreed to develop and implement an advanced data analytics program to enhance its ability to detect and to investigate potential safety defects as part of a two-year consent order.

Daimler Trucks must pay $10 million upfront and spend an additional $5 million on specific projects to enhance safety. The agreement includes a $15 million deferred penalty that may become payable if Daimler does not comply.

Daimler Trucks did not immediately respond to a request for comment.

In December 2019, Daimler AG’s Mercedes-Benz USA unit agreed to a $20 million civil penalty over its handling of U.S. vehicle recalls after NHTSA said it failed to notify owners in a timely fashion in some recalls, did not submit all reports and did not launch at least two recalls in a timely fashion.

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