Toyota to pay sticky pedal fine
Toyota Motor Corp. has agreed to pay a record $16.4 million fine for failing to promptly report to the U.S. government problems with sticky gas pedals on its vehicles, the U.S. Transportation Department said April 19.
Toyota had faced an April 19 deadline to accept or contest the $16.4 million fine, the largest ever assessed by the federal government against an automaker, over evidence it knew about the defective gas pedals in September but did not issue a recall until January.
Under federal law, automakers are required to notify the government within five business days when they find a potential safety defect.
A Transportation official said Toyota is expected to pay the full amount within 30 days to avoid going to court against the government.
The official said Toyota did not intend to admit wrongdoing explicitly, but the company still faces dozens of personal injury and wrongful death lawsuits in federal courts. Federal prosecutors and the Securities and Exchange Commission are conducting investigations related to the recalls.
Kyodo News
The Japan Times Weekly: April 24, 2010 (C) All rights reserved
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