Toyota Faces Second Big Recall-Related Fine
It wouldn’t be surprising if Toyota management is wondering if their U.S. troubles will ever end. In an April 5 letter to Toyota, the National Highway Traffic Safety Administration (NHTSA) suggest that they will levy a second fine related to January’s 2.3 million Toyota vehicle recall.
The first fine of $16.4 million is based on the NHTSA claim that Toyota knew about the accelerator defect at least four months before it announced the problem to the public. This is far longer than the five days allowed by U.S. law to initiate recalls after a problem is uncovered. Now the NHTSA is claiming that the accelerator system had two defects, and that entitles the agency to levy a second penalty.
The second fine is likely to be another $16.4 million, which is the maximum penalty allowed. If NHTSA had its way, the fine would have been as high as $13.8 billion because of the perceived safety hazard presented by the accelerator problem.
More on Toyota:
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Toyota recalls nearly half a million 2010 Prius Hybrids
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U.S. opens investigation on Toyota Prius brake problem posing safety hazard