On Thursday, a U.S. regulator fined Berkshire Hathaway's (NYSE: BRK.A) RV unit, Forest River Inc. $5 million due to safety violations leaving consumers at risk of fire.
According to the National Highway Traffic Safety Administration, Forest River failed to report the mishandling of recalls for a number of vehicles – 726 Rockwood and Flagstaff camper trailers and 200 Palomino camper trailers.
Regulators detected loose wiring that could lead to fire hazards in the Rockwood and Flagstaff vehicles and discovered a defect of the exhaust in the Palomino vehicles which could potentially raise carbon monoxide exposure and reduce fresh air intake.
The Elkhart, Indiana based company will be fined up to $30 million if regulators find any additional violations.
Forest River claims they are working with officials to resolve the inquiry and will hire an independent monitor to administer safety requirements and enhance security procedures. In addition, the company will hire an in-house consultant to oversee reporting operations as part of the settlement.
The company will adopt and promote “best practices” standards for the recreational vehicle industry and enforce its guidelines to become the industry model in safety.
In 2014, the company generated $3.8 billion of revenue.
“Safety is a critical shared responsibility, and when manufacturers fail to meet their responsibility, the Department will enforce the law,” said Transportation Secretary Anthony Foxx.