US Government Hits Toyota With Largest Fine in History
The Obama Transportation Secretary today proposed to fine Toyota with a record $16.4 million.
The AP reported:
The government is seeking to fine Toyota a record $16.4 million, accusing the Japanese auto giant of hiding a “dangerous defect” in its slow reporting of faulty gas pedals that have been blamed for unintended sudden accelerations and motorists’ deaths.
The proposed fine, announced Monday by Transportation Secretary Ray LaHood, is the most the government could levy for the sticking gas pedals that have led Toyota to recall millions of vehicles. There could be further penalties under continuing federal investigations, and Toyota also faces private lawsuits seeking many millions more.
Toyota Motor Corp. has recalled more than 6 million vehicles in the U.S., and more than 8 million worldwide, because of acceleration problems in multiple models and braking issues in the Prius hybrid.