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Cebu_4_2
5th April 2010, 08:01 PM
More Fvcking crap, you just can't make this shit up!

U.S. Is Seeking Maximum Fine Against Toyota
By MICHELINE MAYNARD
Published: April 5, 2010

DETROIT — The Transportation Department said Monday it would seek a $16.4 million fine against Toyota, the largest allowed, because the company had failed to promptly notify the government about potential problems with accelerator pedals.
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Kevin Lamarque/Reuters

Ray LaHood, the transportation secretary, said Toyota knew of accelerator problems months before its recall.
Back Story With The Times's Micheline Maynard
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The fine, which Toyota has two weeks to contest, would be the largest civil penalty assessed by the government against a car company. In taking the step, federal authorities are sending the strongest signal yet that they believe the carmaker deliberately concealed safety information from them.

“We now have proof that Toyota failed to live up to its legal obligations,” Transportation Secretary Ray LaHood said in a 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.”

Mr. LaHood said documents obtained by the department showed Toyota had known of the potential pedal defect since at least last Sept. 29, when it issued repair procedures in 31 European countries and Canada to address complaints that accelerator pedals could stick and cause sudden, unintended acceleration.

The documents also showed that the company received complaints at that time from owners in the United States who were experiencing the same problems.

The company, however, did not recall vehicles in this country for the pedal problem until late January, although it issued a recall for floor mats last fall. Auto companies are legally obligated to notify the National Highway Traffic Safety Administration within five business days if they determine that a safety defect exists.

The agency itself has come under criticism for being too lenient in the past with Toyota when defects occurred.

Under law, Toyota has two weeks to accept or contest the proposed fine. The company has not replied to the department, a transportation spokeswoman said Monday. If Toyota chooses to fight the penalty, the government can sue to have it imposed in court.

A Toyota spokeswoman, Cindy Knight, said in a statement that the company had not yet received a letter from the agency about the fine.

“We have already taken a number of important steps to improve our communications with regulators and customers on safety-related matters as part of our strengthened overall commitment to quality assurance,” Ms. Knight said.

The fine is the latest development in an episode that has shaken Toyota’s once-sterling image and made it the subject of lawsuits seeking billions of dollars in damages.

In the last six months, Toyota has recalled more than eight million vehicles worldwide, about six million of them in the United States, for pedals that could stick or for floor mats that could become entangled in the pedals. The company briefly halted production and sales of some vehicles sold in the United States until it could prescribe a repair.

The recalls led to a series of prominent hearings in Congress this winter that included the company’s president, Akio Toyoda, as well as relatives of those killed in crashes and owners who said they had experienced unintended acceleration.

Mr. Toyoda, the grandson of Toyota’s founder, has apologized repeatedly for the accidents and vowed his company would reorganize to prevent future safety problems.

Officials at Toyota’s American operations said during Congressional testimony in February that they had not known about the sticking accelerator issue until this winter, even though Toyota had received complaints about it in Ireland and Britain in late 2008, and began changing production methods in Europe last August.

Further, Toyota had already completed making the changes on cars sold in Europe before the January recall took place in the United States.

The N.H.T.S.A. is still investigating two other Toyota recalls to see if more fines should be imposed. That investigation began on Feb. 16. It can impose a similar fine in each recall.

“We will continue to hold Toyota accountable for any additional violations we find in our ongoing investigation,” David Strickland, the agency’s administrator, said in a statement.

The agency decided to seek the fine on Monday based on a preliminary investigation of more than 70,000 pages of documents received as part of its investigation of Toyota.

During Congressional testimony, Toyota officials admitted that information about recalls and defects in other countries was not routinely shared, although it could be obtained by visiting a company database. They said the authority to make recall decisions rested with company officials in Japan.

Since then, Toyota has created a global quality committee, with 70 representatives from around the world, which will be responsible for assuring that problems are shared among the company’s units in various regions.

The safety agency also was criticized at the Congressional hearings for failing to be more aggressive in pursuing Toyota. Company documents showed the N.H.T.S.A. reached agreements several times in recent years that allowed Toyota to take less-extensive recall steps.

In one 2007 presentation, headlined “Safety Wins for Toyota,” the company said it had saved $100 million by negotiating a smaller recall campaign.

The $16.375 million penalty is the largest allowed per recall under the Tread Act, which was enacted after accidents involving Firestone tires on Ford Explorers. Though it would be a record in the auto industry, the fine pales in comparison with those the government has levied against other companies. For example, the Justice Department reached a $2.3 billion settlement last September with Pfizer, the pharmaceutical giant, over fraudulent marketing issues.

Sid Shapiro, a law professor at Wake Forest University and vice president of the Center for Progressive Reform, a legal research organization, questioned whether the Toyota fine would be effective.

“It’s good news that N.H.T.S.A. is being an aggressive regulator, but you have to have doubts whether a $16 million fine is going to have a deterrent effect on automobile companies that are worth billions of dollars,” Mr. Shapiro said.

Mike Rozembajgier, director of recalls for ExpertRECALL, a consulting firm that helps manufacturers conduct product recalls, said the amount of the fine might be less important than the reasoning behind it.

Toyota reported strong March sales, helped by incentives it introduced in the wake of the recalls. But Mr. Rozembajgier said its customers could be less supportive should it turn out Toyota had tried to hide the defects, as the government contended.

“If it was done knowingly,” he said, “then it certainly becomes a game-changer for consumers.”

Nick Bunkley contributed reporting.

http://www.nytimes.com/2010/04/06/business/06toyota.html?src=me

Grand Master Melon
6th April 2010, 02:47 AM
Doesn't seem like a very significant fine if you ask me.

Osaka
6th April 2010, 04:14 AM
Doesn't seem like a very significant fine if you ask me.


Agreed. What exactly is the problem with the fine, Cebu?

VX1
6th April 2010, 06:21 AM
I'm no fan of Toyota. I've personally stood in court against them while they made up fantastical lies to cover up major design defects in their product. They are getting what they deserve for their lack of ethics that obviously permeates much of the corporation. $16 million is just a slap on the wrist for them.

With that said, I feel the U.S. government surrendered the right to fine a foreign automaker when they took over GM. At this point, it is no different than Best Buy being allowed to levy a fine on Circuit City anytime they wish. It is almost the stuff that wars are fought over.