German luxury brand admits to “challenges” after being forced to pay $72m for misleading customers.

One of BMW’s most senior executives has admitted the company faces serious “challenges” with its Australian finance arm, which was this week reportedly forced to pay $72 million for misleading local customers.

Speaking to motoring.com.au at the announcement of its future electrification strategy in Germany this week, BMW’s global sales and marketing director Dr Ian Robertson said the century-old Bavarian brand’s Australian finance operation will be investigated.

“At the moment we have a few challenges in Australia with our financial services operation. We will look at it,” he said.

“There is a lot of work to do there. We are not where we would expect to be.”

BMW Australia Finance has agreed to a “remediation program” with the Australian Securities and Investments Commission (ASIC), which commenced on December 6 and will remain open until December 31, 2017.

The remediation program, in which customers are required to register their interest, is available to all BMW Australia Finance (including BMW, MINI and Alphera Financial Services) customers who entered into a consumer finance contract from January 1, 2011 to August 31, 2016.

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