$16.4 Million Toyota Fine

According to the Los Angeles Times, Toyota has agreed to pay a fine of $16.4 million to resolve the gas-pedal sticking recall.  They do however deny any allegations that they attempted to hide the problem.  The money seems a bit excessive, if in fact they were honest, and did not attempt to cover up an issue with over 2.3 million vehicles.

The fine was paid to the National Highway Traffic Safety Administration for not notifying them of a problem within 5 days.  Federal law requires manufacturers to notify the NHTSA within 5 days, Toyota failed to disclose the the defect in a timely manner.

“We agreed to this settlement in order to avoid a protracted dispute and possible litigation, as well as to allow us to move forward fully focused on the steps to strengthen our quality assurance operations,” Toyota said in a statement.

The fine is the largest ever by the National Highway Traffic Safety Administration.  The next closest fine was paid by GM over a windshield wiper recall, which cost GM $1 million.  Like me, most officials and industry experts believe that Toyota paying the fine is an admission of guilt to some degree.

Author: Christopher

I've been an auto enthusiast since birth. I'm a grease monkey at heart and love learning to work on anything automotive. You'll often find me hiding in the garage, attending car shows, and reading about the latest and greatest online.

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