Australia fines Mercedes Benz unit $8.5 million for lack of urgency on airbag recall

-The Federal Court docket of Australia has ordered Mercedes Benz Group’s native unit to pay an A$12.5 million ($8.49 million) superb for failing to speak to prospects the urgency in recalling its “probably lethal” airbags, the nation’s competitors regulator stated on Friday.

The Australian Competitors & Client Fee (ACCC) stated in a press release the German automaker admitted it had breached the nation’s shopper legislation by failing to obviously talk with prospects the urgency of the recall, as required by the Takata Recall Discover of the nation’s hihgway site visitors security physique.

“We consider the statements made by Mercedes-Benz employees had the potential to present the impression to customers that the airbag alternative was much less pressing than was warranted by the true dangers posed by the defective airbags,” ACCC Deputy Chair Delia Rickard stated.

In conversations with 27 customers, Mercedes-Benz employees described the recall as a “precaution”, or implied that the kind of airbags utilized in Mercedes autos had not brought on any accidents, accidents or accidents, when that was not correct, the ACCC stated.

The regulator calls the airbags – manufactured by Japanese automotive elements maker Takata Corp – as “a probably lethal difficulty”.

“It was very important for the security of Australian drivers and passengers that producers took the dangers significantly, and clearly communicated the dangers to customers.”

Mercedes didn't instantly reply to a Reuters request for remark.

($1 = 1.4717 Australian dollars)

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