BMW recalls 1.3 million 5 and 6 series models worldwide

26 March 2012 Last updated at 12:14 ET

German luxury carmaker BMW is recalling some 1.3 million cars worldwide because of potential battery problems that could, in extreme cases, result in a fire.

The cars involved are 5 and 6 Series models built between 2003 and 2010.
The company said it had received nine reports of the defect, but was not aware of any injuries resulting from the fault.
Owners should take the vehicles to authorised dealers for repair.
It said the battery cable cover may be incorrectly mounted.
A company statement said: "In order to carry out a quality measure, BMW is recalling all BMW 5 and 6 Series models of the previous generation, built between 2003 and 2010 and still on the market, for repair at authorised dealers.
"This can result in the electrical system malfunctioning, the vehicle failing to start and, in some cases, to charring or fire."
It said it would write to all owners and that checks would take about 30 minutes and be free of charge.
Earlier this month, the company reported record profit margins in its core car business for 2011.
Its profits jumped by 51% last year to 4.9bn euros ($6.43bn; £4.1bn) compared with 3.24bn euros from the year before. Sales rose 14% to 68.82bn euros.

http://www.bbc.co.uk/news/business-17514172

1.    What is the link to Crisis Management?

A battery problem has been linked to the BMW 5 and 6 series which can result in system failures including potential fires. This could be due to the battery cover being incorrectly mounted and has caused BMW to issue a recall on the affected products.

2.    What stage of Crisis Management does the system appear to be at?

The system is somewhere between an issue and a risk stage. This is because the potential for an adverse event is moderate and no reported case of fires and/or injuries have been reported. However if an adverse event does occur then this issue can turn into a crisis.

3.    How well does the system appear to be handling the situation?

The system appears to be handling the situation well. BMW is recalling all BMW 5 and 6 series for repair at authorized dealers. They are being proactive in their approach to contact all owners and deal with this issue as soon as possible.

4.    What level of crisis preparedness does the system appear to have?

There appears to be a decent level of crisis preparedness in the system. BMW has decided to write to all owners regarding this concern and for them to get their vehicles repaired at an authorized dealer free of charge. BMW profits jumped 51% last year to 4.9 billion Euros, so financially there should be sufficient equity and assets to be prepared for a crisis.

5.    What personal reactions/feelings does the description trigger in you?

It saddens me to find out that a high calibre product such as BMW did not have enough quality control practices in place to prevent an incorrectly mounted battery. Though the chances of a fire happening are rare, it could seriously decrease consumer confidence in the product in case it did happen. Contacting owners about this problem before it escalates does help with damage control

6.    What advice would you offer to those involved?

The advice to BMW would be to issue an apology and report how the problem occurred and what steps and procedures are being done to prevent it from happening again. I personally believe letters will not reach owners fast enough and that they (owners) should be contacted via phone for more immediate contact. An apology by a person over the phone is better than an apology written on paper because it gives more of a human touch.