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Feds Fine Toyota $16.4M

Automaker has the right to appeal penalty

By M. Morris,  Newser Staff

Posted Apr 5, 2010 4:18 PM CDT

(Newser) – Toyota is still paying for its decision to wait 4 months before announcing a recall and notifying federal regulators of the "sticky pedal" defect—and the automaker will pay even more: a $16.4 million fine imposed by the National Highway Traffic Safety Administration this afternoon. Toyota has 2 weeks to say whether it will appeal the penalty, the largest the NHTSA is allowed to levy under federal law and the largest the agency has ever imposed.

The tough stance is an indication of a newly tough approach by the NHTSA, reports the Detroit News. "We now have proof that Toyota failed to live up to its legal obligations," 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. For those reasons, we are seeking the maximum penalty possible under current laws."

The Toyota logo on a car at a dealership in Nashville, Tenn., Jan. 27, 2010.
The Toyota logo on a car at a dealership in Nashville, Tenn., Jan. 27, 2010.   (AP Photo/Mark Humphrey, File)
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COMMENTS
Showing 3 of 11 comments
inky
Apr 6, 2010 2:41 AM CDT
And this fixes anything how?
adsims2001
Apr 6, 2010 12:47 AM CDT
Net income: $4.45 billion from 2009. $16.4 million: 0.37% of $4.45 billion. It doesn't matter. They pay dozens of times more in taxes than this fine.
workingclassdrone
Apr 5, 2010 11:51 PM CDT
I don't remember Toyota crying broke when the US auto makers were having their big pity party. How many of the US makers have out cut american jobs and out sourced to their friends with a cheap labor force south of our border? In the 90's I had an American brand suv that had eaten 3 transmissions between 39,000 and 59,000 miles. My friendly dealer turned the deaf ear said to call Detroit and they ran me through a maze of telephone conversations and personnel that would make any telemarketer proud. Toyota does have a problem and they are working on it under the US auto makers eyes. You don't think the big 3 are cashing in some of their IOU's from their friends on the hill and calling in to release the hounds on Toyota. They need to talk to Toyota vehicle owners, then big 3 owners and compare notes. If I needed another vehicle now I would buy a Toyota hands down but mine is doing fine even with 385,000 (yes, that's correct) miles on it now and still going.
 

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