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Toyota Should Be Fined $16.4 Million, LaHood Says (Obama's World: Your competitor can fine you)
Business Week ^ | 04/05/2010 | Angela Greiling Keane

Posted on 04/05/2010 1:33:31 PM PDT by SeekAndFind

Toyota Motor Corp. “knowingly hid a dangerous defect” that caused sudden acceleration and should be fined the maximum civil penalty of $16.4 million, U.S. Transportation Secretary Ray LaHood said.

Toyota, the world’s largest automaker, waited at least four months before it told the National Highway Traffic Safety Administration about vehicle accelerator pedals that may stick, LaHood said today in an e-mailed statement.

“We now have proof that Toyota failed to live up to its legal obligations,” LaHood said in the statement. “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.”

The proposed fine is the largest civil penalty assessed by the auto safety regulator against a carmaker. Toyota, based in Toyota City, Japan, in January recalled about 2.3 million cars and trucks for sticky accelerator pedals. The company has recalled more than 8 million vehicles worldwide for flaws that may cause unintended acceleration.

NHTSA cited documents obtained from Toyota in saying the company knew about the pedal defect since at least Sept. 29, the day it told distributors in 31 European countries and Canada to make repairs to resolve sticky-pedal complaints.

Brian Lyons, a spokesman for Toyota’s U.S. sales unit in Torrance, California, had no immediate comment on the fine.

Agree or Contest

Toyota has two weeks to agree or contest the fine, Olivia Alair, a Transportation Department spokeswoman, said in an e- mail. If Toyota contests the fine and the two sides are unable to reach a settlement, “it would go to court,” she said.

NHTSA’s largest automaker fine was $1 million against General Motors Corp. to settle charges that the company failed to conduct a timely recall involving windshield-wiper failures in about 581,000 vehicles.

(Excerpt) Read more at businessweek.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: agenda; automakers; bho44; bhodot; fine; lahood; toyota
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To: Hoosier-Daddy
You got that right. the owner of two large automobile companies fining a foreign competitor. Just how is that going to seem in court?
21 posted on 04/05/2010 2:05:47 PM PDT by oldenuff2no (Freedom and security are worth fighting for. Proud vet.)
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To: TChris
Why close a factory? What good would that do?

Indeed. Close ALL Toyota manufacturing facilities in the US and suspend all imports while offering profuse apologies and professions of unworthiness.

Then sit back and watch their gills flap.

22 posted on 04/05/2010 2:14:00 PM PDT by Chuckster (Domari nolo!)
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To: Chuckster
Indeed. Close ALL Toyota manufacturing facilities in the US and suspend all imports...

What are you smoking?

You think the UAW and Dems wouldn't just LOVE to make that happen if they could?

If you think Toyota disappearing from the US would make any Dems sad, you're crazy.

23 posted on 04/05/2010 2:20:50 PM PDT by TChris ("Hello", the politician lied.)
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To: Drill Thrawl

Ford is union. Toyota is not...in fact they closed the only joint GM/Toyota union plant after GM declared bankruptcy. This is clearly payback for that, the Feds even raided some of Toyota suppliers awhile back.


24 posted on 04/05/2010 2:23:40 PM PDT by ravingnutter
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To: SeekAndFind

How many US jobs will Toyota cut to pay that fine?
Maybe an entire plant.

India is an up and coming place.


25 posted on 04/05/2010 3:07:37 PM PDT by silverleaf (Karl Marx was NOT one of America's Founding Fathers)
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To: Drill Thrawl

Hmmm.......makes ya wonder don’t it? I’ve heard Ford is making money hand over fist so I’m really suprised BO and his henchmen haven’t taken it over........can’t have any company making a profit around here can they? Goes against their grain.


26 posted on 04/05/2010 5:59:54 PM PDT by Dawgreg (Happiness is not having what you want, but wanting what you have.)
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To: SeekAndFind

Need to keep GM boycotted and look down on anyone who buys a GM car.


27 posted on 04/05/2010 6:16:48 PM PDT by Monorprise
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