The National Highway Transportation Safety Administration has announced that it is seeking the maximum possible fine of $16.375 million against Toyota . The fine is being sought for Toyota’s failure to notify safety officials about their known sticking pedals within the mandated five business day period.
According to CNN, NHTSA is seeking the maximum potential penalty against Toyota that is legally possible under federal law. Should the fine be imposed at the $16.375 figure, it would become the largest fine ever imposed against an automaker by the agency, according to the Department of Transportation.
A report by USA Today says that the federal laws require manufacturers to notify NHTSA within five business days of a known safety defect – an act Toyota failed to do by at least four months. According to documents obtained by NHTSA during congressional hearings, Toyota knew of the pedal defect at least as early as September 29, 2009, but failed to notify NHTSA until January, 2010.
NHTSA points out that Toyota issued repair orders to dealers in 31 European countries, as well as Canada, with the repair orders acknowledging sticky accelerator pedals, sudden increases in engine RPMs and sudden vehicles acceleration on September 29, 2009. Toyota did not make any similar announcement in the U.S. until four months later, following national media exposure regarding a multiple fatality due to unintended acceleration. This proves that Toyota failed to notify officials by over four months beyond the required time frame.
“We now have proof that Toyota failed to live up to its legal obligations,” said transportation secretary Ray LaHood. “Worse yet, 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.”
NHTSA also said that it is continuing its investigation of Toyota, and should it find additional illegal actions it will continue to seek additional fines as necessary.
Update: Toyota responds
Following NHTSA’s announcement regarding the fines to be levied against Toyota, the automaker has released a statement clarifying that they have not yet received any notice from the safety agency regarding a fine, but they have already taken steps to improve communications with the agency. Toyota also pointed out that they have hired a new chief quality officer for North America to allow for prompt safety-related decisions.
References
1. ‘Agency seeking $16 million…’ view
2. ‘Feds plan to hit Toyota with…’ view
