Toyota to be fined $16m; Accused of knowingly endangering American drivers | Virginia Recall Attorney
On Monday, federal safety regulators stated they would fine Toyota almost $16.4 million for their initial failure to disclose problems with the accelerator pedals.
The National Highway Traffic Safety Administration said Toyota knew about the problems in September 2009, but did not announce a recall until January 2010.
Legally, automakers have to notify NHTSA within five business days of determining a defect. After reviewing Toyota’s records, NHTSA stated Toyota had known about the problem since at least September 29, 2009.
$16.375 million is the maximum penalty NHTSA is allowed to impose. Prior to this decision, the largest fine issued was $1 million against GM in 2004, for failure to disclose a windshield wiper defect.
“We now have proof that Toyota failed to live up to its legal obligations,” said US 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.”
According to Toyota’s records, they issued repair procedures on September 29 to distributors in 31 European countries and Canada addressing the complaints of “sticky” accelerator pedals. According to the NHTSA, documents show Toyota was aware of US consumers experiencing the same problems.
As the agency continues to investigate, Toyota could face additional fines. “We will continue to hold Toyota accountable for any additional violations we find in our ongoing investigation,” NHTSA Administrator David Strickland said.
Toyota’s revenue last year was $209 billion. While the $16 million fine seems like a pittance, consumers will not react well if it is established that Toyota was aware of the problems and didn’t immediately issue a recall. While they have reported strong March sales, many of those can be attributed to incentives issued in the wake of the recalls.
The casualties of Toyota vehicles are most unfortunate, and if the NHTSA’s allegations are correct, a terrible example of how corporate behavior. If you or someone you know has been a victim of a defective or recalled product, the Parrish Law Firm may be able to help. Contact us for a free consultation.
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- NASA and National Academy of Sciences Investigate Toyota Accelerators | Prince William Personal Injury Attorney
Tags: nhtsa, toyota recall, Virginia defective product attorney
