Personal Injury Law

Toyota faces fines over $16 Million for Safety Violations and Notifications

By LaBovick Law

The U.S. Department of Transportation (DOT) is seeking the maximum civil penalty of $16.375 million, against Toyota for failing to notify the government about its sticky accelerators in a prompt manner. This would be the the largest civil penalty ever assessed against an automaker by the agency. According to records, Toyota knew about the problem as early as late September 2009 when the problem was confirmed in Europe and Canada but waited until late January 2010 to recall 2.3 million cars in the U.S. for the same issue. This is unacceptable behavior for a company that prides itself on "quality, dependability and reliability".

U.S. DOT Secretary Ray LaHood stated the following on the Toyota issue
Automakers are required to provide the National Highway Traffic Safety Administration (NHTSA) with notification of a safety defect within five days of its discovery. Why did it take Toyota so long to inform U.S. officials and the American public about about the threat of sticky accelerator pedals on certain models? Were they testing the cars to be sure of the defect or was it corporate greed?

'We now have proof that Toyota failed to live up to its legal obligations. 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.'

At least 52 deaths have been linked to crashes allegedly caused by accelerator problems in Toyotas, according to government records. The sticky accelerator pedal recall involves the 2007-10 Camry, 2009-10 Corolla, 2009-10 Matrix, 2005-10 Avalon, 2010 Highlander and 2007-10 Tundra. The recalls have led to congressional hearings, a criminal investigation by federal prosecutors, dozens of lawsuits and an intense review by the Transportation Department.

Toyota has attributed the problem to sticking gas pedals and accelerators that can become jammed in floor mats, and has cited no evidence of an electrical problem. Toyota dealers have fixed 1.7 million vehicles under recall so far. Consumer groups have said electronics could be the culprit, and dozens of Toyota owners who had their cars fixed in the recall have complained of more problems with their vehicles surging forward unexpectedly

Toyota could face additional violations and further penalties, if more evidence is found in the ongoing investigations. Toyota must now decide whether it will contest the fine

Click on the following links to read more on the proposed Toyota penalty:

Secretary LaHood Announces DOT is Seeking Maximum Civil Penalty from Toyota - NHTSA 
U.S. Seeks $16 Million Penalty Over Toyota Recalls - NPR
U.S. seeks to hit Toyota with top fine for delays in disclosing problems - LA Times 

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Full post as published by LaBovick Injury Law Blog on April 07, 2010 (boomark / email).