US wants Toyota to pay US$16m
By Ken Thomas |
April 7, 2010, Wednesday
|
Print Edition
Print Edition
THE United States government has accused Toyota of hiding a "dangerous defect" and proposed a record US$16.4 million fine for failing to quickly alert regulators to safety problems in gas pedals on models such as the Camry and Corolla.
The proposed fine, announced on Monday by US Transportation Secretary Ray LaHood, is the most the government could levy for the sticking gas pedals that have led Toyota to recall millions of vehicles. There could be further penalties under continuing federal investigations. The Japanese auto maker faces private lawsuits seeking many millions more.
Toyota Motor Corp has recalled more than 6 million autos in the US, and more than 8 million worldwide, because of acceleration problems in multiple models and braking issues in the Prius hybrid.
Documents obtained from the auto maker show that Toyota knew of the problem with the sticking gas pedals in late September but did not issue a recall until late January, LaHood said. The sticking pedals involved 2.3 million vehicles.
"We now have proof that Toyota failed to live up to its legal obligations," LaHood said in a statement. "Worse yet, they knowingly hid a dangerous defect for months from US officials and did not take action to protect millions of drivers and their families."
For those reasons, LaHood said, the government is seeking a fine of US$16.375 million, the maximum penalty possible. That dwarfs the previous record: In 2004, General Motors paid a US$1 million fine for responding too slowly on a recall of nearly 600,000 vehicles over windshield wiper failure.
How Toyota decides to respond to the fines could pose a dilemma for the auto maker. It faces 138 potential class-action lawsuits over falling vehicle values and nearly 100 personal injury and wrongful death cases in federal courts nationwide. If Toyota pays the fines, the admission could hurt it in courtrooms. But battling the government over the penalties could undermine the auto maker's attempts to move on from the recalls.
See more on B4
The proposed fine, announced on Monday by US Transportation Secretary Ray LaHood, is the most the government could levy for the sticking gas pedals that have led Toyota to recall millions of vehicles. There could be further penalties under continuing federal investigations. The Japanese auto maker faces private lawsuits seeking many millions more.
Toyota Motor Corp has recalled more than 6 million autos in the US, and more than 8 million worldwide, because of acceleration problems in multiple models and braking issues in the Prius hybrid.
Documents obtained from the auto maker show that Toyota knew of the problem with the sticking gas pedals in late September but did not issue a recall until late January, LaHood said. The sticking pedals involved 2.3 million vehicles.
"We now have proof that Toyota failed to live up to its legal obligations," LaHood said in a statement. "Worse yet, they knowingly hid a dangerous defect for months from US officials and did not take action to protect millions of drivers and their families."
For those reasons, LaHood said, the government is seeking a fine of US$16.375 million, the maximum penalty possible. That dwarfs the previous record: In 2004, General Motors paid a US$1 million fine for responding too slowly on a recall of nearly 600,000 vehicles over windshield wiper failure.
How Toyota decides to respond to the fines could pose a dilemma for the auto maker. It faces 138 potential class-action lawsuits over falling vehicle values and nearly 100 personal injury and wrongful death cases in federal courts nationwide. If Toyota pays the fines, the admission could hurt it in courtrooms. But battling the government over the penalties could undermine the auto maker's attempts to move on from the recalls.
See more on B4
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
