Toyota Slapped with Relatively Small Fine for Hiding Defects

For hiding a "dangerous" gas pedal defect the U.S. government wants to hand Toyota the maximum penalty, a fine of $16.4 million, reports the AP. That's a paltry amount for the world's largest automaker, which has seen surging sales despite its PR crisis. The sudden acceleration problem was blamed in several NY area incidents, including a Westchester nanny who drove into a stone wall (it turned out she didn't brake). Opportunistic drivers aside, Transportation Secretary Ray LaHood says investigators have determined the auto giant acted badly. "We now have proof that Toyota failed to live up to its legal obligations," he 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."

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By Sabrina Jaszi in News on April 6, 2010 12:10 PM

Comments [rss]

nik13

Hmmm, I believe it was 16 billions, not millions. Toyota is being singled out by a government that owns its major competitor, the Government Motors. Never mind braking problems - Toyota's real crime was a plan to close its only unionised plant in California, inherited from GM during Geo fiasco. That can't happen when a POTUS is a hand-puppet of union boss Andy Stern.

virgilstarkwell

and this has what to do with "new york city news, food, arts, and events"?

i know some believe this call for g'ist to stick to its mission is pedantic but i think their product is a good one and will suffer if it gets watered down and becomes just another blog picking up the same stories as everyone else.

longacre

While Toyota did act shadily, the actual danger from this was completely overblown by the government (which has a massive conflict of interest called GM) and the media.

Gotham Extremist

16 mil is barely a drop in the Toyota's Pacific Ocean sized bank account. They are laughing their asses off at the US government right about now.

unretrofiedforu

What? American Gov't only slapping the wrist of big business? Big Business not headed within US borders even? I'm so surprised and outraged!

/sarcasm.