Feds Target Toyota with Largest Fine Ever Levied Against an Automaker
LaHood wants $16.4 million for failure to notify NHTSA of 'sticky' gas pedals.
Apr. 5, 2010 — -- Transportation Secretary Ray LaHood announced today that the National Highway Traffic Safety Administration (NHTSA) will seek the largest civil penalty possible against Toyota, and the largest civil penalty ever levied against an automaker, for failing to notify the government about "sticky" gas pedals.
Toyota recalled 2.3 million U.S vehicles in January for "sticky" gas pedals that it blamed for some incidents of sudden acceleration. Under law, carmakers must tell NHTSA within five business days if they have identified a safety defect. NHTSA determined through a review of Toyota's own internal documents that the manufacturer knew of the pedal problem on September 29, 2009, four months before the recall.
On September 29, Toyota sent repair procedures for the pedals to distributors in 32 countries -- but not the U.S. -- because of complaints about the pedals and incidents of sudden unintended acceleration.
"We now have proof that Toyota failed to live up to its legal obligations," said Secretary 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."
Federal law permits NHTSA to ask for a fine of $16.375 million for the delay in notification about sticky pedals. NHTSA may levy further penalties for other additional violations if warranted.
"Safety is our top priority and we will vigorously pursue companies that put consumers at risk," said NHTSA Administrator David Strickland. "We will continue to hold Toyota accountable for any additional violations we find in our ongoing investigation."
Toyota has issued three major recalls in recent months for ill-fitting floor mats, sticky pedals and software that controls braking. In February, NHTSA began investigating how Toyota had conducted the recalls and asked the automaker for documents. As of April 5, Toyota had submitted more than 70,000 pages of documents for NHTSA officials to review.
