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Toyota slapped with hefty fine
Source: Agencies |
December 19, 2012, Wednesday
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THE US government has hit Toyota Motor Corp with a record US$17.4 million fine for failing once again to quickly report problems to federal regulators and for delaying a safety recall.
The fine against the world's biggest automaker from the National Highway Traffic Safety Administration, the agency that monitors vehicle safety, is the maximum allowed by law. It's the fourth fine levied against Toyota in the past two years for similar infractions, and it's the largest single fine ever assessed against a car company over safety defects. In 2010, Toyota paid a total of US$48.8 million in fines for three violations.
The latest infraction raises questions about whether the fines are big enough to deter automakers that withhold information from NHTSA, and whether the government agency can do enough to stop repeat offenses. The fine, announced yesterday, is a tiny fraction of Toyota's earnings. The company posted a US$3.2 billion profit in the third quarter.
Toyota said it agreed to pay the penalty without admitting any violation of the law. It pledged to strengthen data collection and evaluation to make sure it takes action more quickly.
The latest fine stems from a June recall of SUVs from Toyota's Lexus luxury brand. About 154,000 of the 2010 Lexus RX 350s and RX 450h models were recalled because the driver's-side floor mats can trap the gas pedal and cause the vehicles to speed up without warning.
The fine against the world's biggest automaker from the National Highway Traffic Safety Administration, the agency that monitors vehicle safety, is the maximum allowed by law. It's the fourth fine levied against Toyota in the past two years for similar infractions, and it's the largest single fine ever assessed against a car company over safety defects. In 2010, Toyota paid a total of US$48.8 million in fines for three violations.
The latest infraction raises questions about whether the fines are big enough to deter automakers that withhold information from NHTSA, and whether the government agency can do enough to stop repeat offenses. The fine, announced yesterday, is a tiny fraction of Toyota's earnings. The company posted a US$3.2 billion profit in the third quarter.
Toyota said it agreed to pay the penalty without admitting any violation of the law. It pledged to strengthen data collection and evaluation to make sure it takes action more quickly.
The latest fine stems from a June recall of SUVs from Toyota's Lexus luxury brand. About 154,000 of the 2010 Lexus RX 350s and RX 450h models were recalled because the driver's-side floor mats can trap the gas pedal and cause the vehicles to speed up without warning.
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