BMW AG, the German Bayerische Motoren Werke and the world's largest premium automaker, was fined by the U.S. National Highway Traffic Safety Administration with $3 million civil penally as the firm postponed reporting auto-safty defects and recalling of about 338,700 cars in 2010.

This is the second largest fine ever issued by the U.S. Administration, following the largest penalty of $16.4 million issued against Touota Motor Corporation in 2010.

The cars recalled included X5 and X6 vehicles, 5 Series Grand Turismo and 7 Series and some Motorcycles, according to the agency recrodeds. The firm must pay the fine maximum in one month to the U.S. Treasury.