Toyota fined $16 million by US government over recalls

Tuesday, April 6, 2010

A Toyota Camry, one of Toyota's models that was affected by the recalls.
Image: IFCAR.

US regulators intend to fine Toyota Motor Company $16.4 million over allegations that the company failed to notify government officials in "a timely way" about flaws in its vehicles that led to a major recall earlier this year.

The fine is the maximum penalty allowed under current US law, and would be the largest ever against an automaker, dwarfing a $1 million fine against General Motors in 2004. The U.S. Transportation Department is also considering the possibility of further fines if it was determined that the company had committed other violations of US law. The fine is the result of an investigation opened on February 16 into Toyota's actions during the recall of 2.3 million vehicles in the US. Toyota now has a period of two weeks in which it can appeal the fine.

	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.
—Ray LaHood, US Transportation Secretary

Current law requires an automaker to notify the US government within five days if it has determined that a safety issue exists in one of its vehicles. Internal Toyota documents obtained by the government showed that the company was aware of the issues in its cars as early as September 2009, well before it reported the problems to the US government in January.

US Transportation Secretary Ray LaHood said that the government has "proof that Toyota failed to live up to its legal obligations," and that "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."

Toyota, in a statement posted on their website, said that "We have already taken a number of important steps to improve our communications with regulators and customers on safety-related matters as part of our strengthened overall commitment to quality assurance." The statement added, "These include the appointment of a new Chief Quality Officer for North America and a greater role for the region in making safety-related decisions."

Have an opinion on this story? Share it!

Sources

"Toyota faces record $16m fine from US over pedal recall" — BBC News Online, April 5, 2010
"U.S. Fining Toyota $16.4 Million Over Recall Delay" — The New York Times, April 5, 2010

Share this:

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.