Toyota Fined Record $16 Million for Hiding Dangerous Defect

April 7, 2010

The federal government has fined Toyota a record $16.375 million for hiding the dangerous "sticky pedal" defect from the public. The fine is the greatest amount the government can levy against the auto maker but it could face further fines and sanctions from continuing federal investigations.

Toyota has recalled more than 6 million vehicles in the United States and 8 million vehicles worldwide because of floor mat problems, sticky pedals and braking problems with the Prius. These massive recalls have dealt the company a black eye and left its once sterling reputation for safety in serious doubt. Now that the federal government has documentation that Toyota knew of the defect months before it issued the recall faith in Toyota may reach an all time low.

Internal documents have surfaced that the company knew of the problems with the gas pedal in late September but did not issue its first recall in the United States until late January. The documents show that Toyota issued repairs to vehicles exhibiting sudden acceleration in Europe and Canada as early as September 29, 2009 and knew that motorists in the United States were experiencing the same problems. Toyota failed in its duty to protect millions of United States motorists and knowingly put their customer's lives at risk by waiting almost four months to issue a recall. To date the government has linked over fifty deaths and hundreds of injuries to the accelerator pedal defect with Toyota vehicles.

dollar_sign.jpgToyota has two weeks to pay or contest the fine levied by the National Highway Traffic Safety Administration. If Toyota pays the fine and admits guilt the hundreds of lawsuits nationwide brought against Toyota will hold greater power in court. Toyota has yet to decide if it plans to pay the fine or contest the allegations of the federal government.

Amid the fines and government investigations, experts are still concerned that Toyota has yet to address the issue. Many in the auto industry believe that the defect lies with the electronic throttle control system. Toyota denies those claims and believes they have addressed all the defects in the recalls it has already issued.

Related Sources:
Toyota Faces $16M Fine, Accused Of Hiding Defect