Toyota faces maximum fine

unkel

for keeping the sticky accelerator problem a secret

US fining Toyota $16.4 mln over recall delay

* Gov't says Toyota knew of defect for at least 4 months

* Fine is largest ever in U.S. against an automaker

* More fines possible over Toyota's handling of recalls (Recasts first paragraph, adds Toyota statement, details on potential fine, background)

WASHINGTON, April 5 (Reuters) - Toyota Motor Corp (7203.T) faces a proposed $16.4 million fine from U.S. regulators, the maximum penalty allowed under current laws, after the automaker failed to notify the government in a timely way about accelerator pedal flaws that were the subject of a massive recall in January.

The U.S. Transportation Department said on Monday that safety regulators were still determining whether Toyota had additional violations that would warrant more penalties.

"We now have proof that Toyota failed to live up to its legal obligations," U.S. Transportation Secretary Ray LaHood said in a statement. "Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families."

The penalty by the Department's National Highway Traffic Safety Administration would be the largest fine ever levied against an auto manufacturer by the government.

Toyota has the right to appeal the penalty.

The previous largest fine was $1 million against General Motors because of a windshield wiper failure in 2002-2003 model vehicles.

Toyota did not address the proposed fine specifically in a statement on Monday afternoon, but did say it had already taken "a number of important steps" to improve communications with regulators and customers over safety matters.

Documents obtained from Toyota showed the automaker had issued repair notices in Canada and Europe to address complaints about sticky accelerator pedals, sudden acceleration and sudden engine revving in late September, but did not begin a U.S. recall until late January, the department said.

Auto manufacturers are legally obligated to notify U.S. safety regulators within five business days if they determine that a safety defect exists and the documents showed that Toyota was aware U.S. consumers were experiencing the same problems, the department said.

Toyota announced in late January that it would recall about 2.3 million vehicles in the United States because of sticky accelerator pedals. The automaker has offered to fix the pedals by adding a metal shim, or to replace them completely.

The recall related to the sticky accelerator pedals was one of a handful of recalls to plague Toyota in recent months and mar the automaker's reputation for vehicle quality.

"Every automobile manufacturer should learn from this and err on the side of disclosure and transparency," said Kurt Bardella, spokesman for U.S. Rep. Darrell Issa, the ranking Republican on a House committee that has held hearings on the handling of Toyota safety recalls.

U.S. safety regulators opened a review on Feb. 16 to determine whether Toyota's recalls of millions of vehicles due to potentially dangerous floormats and sticky accelerator pedals were carried out in a timely manner.

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Le King

Wow, that's a lot of money considering the amount of Recalls Toyota had to make.

EPM

Sounds like the Yanks are making an example of them in a bid to promote home grown motors tbh

Matt Simis

Will the conspiracy theorists accept Toyota's fault I wonder, considering the US Government is talking hard evidence now?

EDIT:

EPM wrote: »

Sounds like the Yanks are making an example of them in a bid to promote home grown motors tbh

Beaten to it by 3min!! :P

ha-ya-said-what

Wonder will he get another one over the GM recall of the 1.3million cars

KamiKazi

EPM wrote: »

Sounds like the Yanks are making an example of them in a bid to promote home grown motors tbh

Yup and they're doing a good job of it.

Guy:Incognito

Did they not fine Daimler Crysler some massive amount last week too? Not a bad way to fill the coffers in a recession.

Any way we could fine them a couple of billion too?:)

EPM

Stekelly wrote: »

Did they not fine Daimler Crysler some massive amount last week too? Not a bad way to fill the coffers in a recession.

Any way we could fine them a couple of billion too?:)

That's actually a genius plan:D

CR 7

I don't buy all the stories anyway, this was the first thing that came to mind when I saw the ages of the drivers involved in all the cases: http://www.psychologytoday.com/blog/extreme-fear/201003/do-toyota-drivers-suffer-faulty-brakes-or-errant-panic-circuitry

unkel

EPM wrote: »

That's actually a genius plan:D

Unfortunately we don't seem to have any rules or regulations in this country that could implement any financial punishment

Remember that garage that had clocked all their cars. There was plenty of proof. The best this state could do was warn them to be a good boy and not to do it again :rolleyes:

peasant

If this fine sticks (and holds up legally) then Toyota will have to pay out on a deluge of civil law suits as well.
Not just from families who actually lost someone in an accident or injured victims ....but everybody who ever owned a Toyota of the affected years will sue them for "emotional distress" or some such.

EPM

peasant wrote: »

but everybody who ever owned a Toyota of the affected years will sue them for "emotional distress" or some such.

I know, the emotional distress of owning a Toyota must be awful



:pac: