In a settlement dated December 17, The National Highway Traffic Safety Administration (NHTSA) has fined Mercedes-Benz USA up to $20 million for violating the government agency's extensive list of recall procedures.

The recalls under investigation covered more than 1.4 million cars between 2016 and 2018.

The problems were mostly procedural in nature.

Daimler's U.S. division, Mercedes-Benz USA, will pay up to $20 million in fines for mishandling dozens of recalls, according to a settlement signed Wednesday between the automaker and the National Highway Traffic Safety Administration (NHTSA).

The fines stem from a year-long NHTSA investigation into every Mercedes recall between 2016 and 2018 after the agency, among several federal violations it identified, found the company late in mailing owner letters and omitting critical information in its filings. The automaker must pay $13 million up front, with another $7 million in hanging fines if NHTSA determines that Mercedes is delaying or failing to improve its recall processes. The company will be audited by NHTSA for the next two years.

According to the settlement, the agency found roughly 40 percent of the automaker's 101 recalls in those earlier years to be out of compliance. The agency found Mercedes either notified customers beyond the 60-day limit (in some cases, as long as 80 days after filing), did not submit those notifications to NHTSA within five days, was late in submitting quarterly reports, did not update the agency on when it would begin repairs, failed to report a defect to NHTSA within five days, or had continuing trouble with its VIN lookup tool.

By law, every automaker must submit quarterly reports to NHTSA that show the progress of ongoing recalls along with all known claims of property damage, death, injury, warranty claims, owner complaints, and internal studies for their past and present models. Automakers must also host NHTSA's VIN lookup service on their U.S. consumer websites and make it easily accessible in the site navigation. NHTSA alleged that the lookup was frequently broken on the company's website.

Mercedes began "numerous efforts" in 2015 to improve its compliance, including hiring more employees dedicated to safety recalls and launching an automated computer system this year, according to the settlement.

The $20 million fine is a wrist slap compared to what NHTSA has fined other automakers for recall violations in recent years. In 2015, the agency fined Honda $70 million for missing safety data and Fiat Chrysler twice for that same amount. The agency can fine automakers up to $21,000 per day under federal law for violations of Federal Motor Vehicle Safety Standards.

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