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This final ruling does not include potential individual law suits that still could be filed against Toyota.
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Toyota to pay record fines for disclosure delay
The automaker's failure to promptly report defects brings federal penalties that top $32 million.
December 20, 2010|By Ken Bensinger and Ralph Vartabedian, Los Angeles Times
Toyota Motor Corp. agreed to pay two fines totaling more than $32.4 million for failing to promptly inform regulators of defects in its vehicles, instead allowing millions of potentially dangerous vehicles to remain on the nation's roads.
The record penalties, resulting from months-long investigations by the Transportation Department into the automaker's handling of safety issues, were related to floor mats that could entrap accelerator pedals and for a flaw that can cause total loss of steering control.
They come in addition to a $16.4-million fine levied against Toyota in April for delaying a recall of gas pedals that could become stuck, bringing the Japanese company's total penalties to nearly $50 million this year.
Prior to this year, the largest penalty against a car company was $1 million, paid by General Motors in 2004 for delaying a windshield wiper recall.
The fines, announced by the government late Monday, were the latest blow to a company that was long heralded as the worldwide leader in safety and quality.
A Los Angeles Times investigation into sudden-acceleration complaints by owners of Toyotas led to three congressional probes and drew national attention to the issue. In the face of the mounting crisis, Toyota temporarily halted sales of eight models, issued millions of recall notices and made a rare public apology for its safety and quality lapses.
Subsequently, the National Highway Traffic Safety Administration opened its own inquiries.
"I am pleased that Toyota agreed to pay the maximum possible penalty," Transportation Secretary Ray LaHood said, signaling that he would continue to take a tough stance with the automaker, which remains under investigation by the agency.
"I expect Toyota to work cooperatively in the future to ensure consumers' safety," he added.
Toyota's board of directors in Japan voted to voluntarily pay the fine, prompting the Transportation Department's announcement. Earlier this year, congressional investigators asserted that key safety decisions were made only in Japan.
In acknowledging the fines, Toyota's top U.S. safety official, Steve St. Angelo, called the safety problems "legacy issues" ascribed to the company's past. He said the company's "North American operations now have a greater voice in making safety decisions, and we are taking appropriate action whenever any issues emerge."
The company said that, in agreeing to pay the fines, it did not admit to any violation of safety laws.
Source:
************************************************** ******************************************
Toyota to pay record fines for disclosure delay
The automaker's failure to promptly report defects brings federal penalties that top $32 million.
December 20, 2010|By Ken Bensinger and Ralph Vartabedian, Los Angeles Times
Toyota Motor Corp. agreed to pay two fines totaling more than $32.4 million for failing to promptly inform regulators of defects in its vehicles, instead allowing millions of potentially dangerous vehicles to remain on the nation's roads.
The record penalties, resulting from months-long investigations by the Transportation Department into the automaker's handling of safety issues, were related to floor mats that could entrap accelerator pedals and for a flaw that can cause total loss of steering control.
They come in addition to a $16.4-million fine levied against Toyota in April for delaying a recall of gas pedals that could become stuck, bringing the Japanese company's total penalties to nearly $50 million this year.
Prior to this year, the largest penalty against a car company was $1 million, paid by General Motors in 2004 for delaying a windshield wiper recall.
The fines, announced by the government late Monday, were the latest blow to a company that was long heralded as the worldwide leader in safety and quality.
A Los Angeles Times investigation into sudden-acceleration complaints by owners of Toyotas led to three congressional probes and drew national attention to the issue. In the face of the mounting crisis, Toyota temporarily halted sales of eight models, issued millions of recall notices and made a rare public apology for its safety and quality lapses.
Subsequently, the National Highway Traffic Safety Administration opened its own inquiries.
"I am pleased that Toyota agreed to pay the maximum possible penalty," Transportation Secretary Ray LaHood said, signaling that he would continue to take a tough stance with the automaker, which remains under investigation by the agency.
"I expect Toyota to work cooperatively in the future to ensure consumers' safety," he added.
Toyota's board of directors in Japan voted to voluntarily pay the fine, prompting the Transportation Department's announcement. Earlier this year, congressional investigators asserted that key safety decisions were made only in Japan.
In acknowledging the fines, Toyota's top U.S. safety official, Steve St. Angelo, called the safety problems "legacy issues" ascribed to the company's past. He said the company's "North American operations now have a greater voice in making safety decisions, and we are taking appropriate action whenever any issues emerge."
The company said that, in agreeing to pay the fines, it did not admit to any violation of safety laws.
Source: