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U.S. seeks to fine Toyota $16.4 million

Started by jimmy olsen, April 05, 2010, 07:46:28 PM

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jimmy olsen

Seems rather pointless, surely this debacle has cost them hundres of millions of dollars already.

http://www.reuters.com/article/idUSTRE6343YE20100406
QuoteU.S. seeks to fine Toyota $16.4 million
John Crawley and David Bailey
WASHINGTON/DETROIT
Mon Apr 5, 2010 8:21pm EDT
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WASHINGTON/DETROIT (Reuters) - Toyota Motor Corp faces a proposed $16.4 million fine from U.S. regulators who said the automaker knowingly delayed a massive recall for defective accelerator pedals.

U.S.

The civil penalty, the largest that the U.S. Department of Transportation has ever sought, is the first official finding that the world's largest automaker violated U.S. safety regulations. Toyota can appeal the penalty.

"We now have proof that Toyota failed to live up to its legal obligations," U.S. 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."

The National Highway Traffic Safety Administration (NHTSA) continues to investigate Toyota recalls, including one in October 2009 for floor mats that can jam the gas pedal and cause uncontrolled acceleration, and additional fines are possible, the agency said.

Toyota did not directly address the issue of the fine, but did say it had taken steps to improve communications about safety issues with both regulators and customers.

Since the recalls, Toyota's reputation for quality has suffered and it is the target of more than 135 U.S. lawsuits.

Jesse Toprak, an industry analyst with TrueCar.com, expected Toyota to appeal the fine.

"I think they will do whatever it takes because of what it might lead to," Toprak said about a likely Toyota challenge. "That (the fine) may very well be the basis for a class action lawsuit."

Toyota has two weeks to decide its response.

The "sticky pedal" case was the only one in a string of voluntary recalls where a formal defect finding was established.

Documents obtained from Toyota showed the automaker had issued repair notices in Canada and Europe to address complaints about "sticky pedals," sudden acceleration and sudden engine revving in late September, but did not begin a U.S. recall until late January, regulators said.

Manufacturers are legally obligated to notify U.S. safety regulators within five business days if they determine that a safety defect exists. The documents showed Toyota was aware U.S. consumers were experiencing the same problems, the Transportation Department said.

As part of the pedal recall, Toyota has offered to add a metal shim or replace them completely.

Previously, the largest fine was $1 million against General Motors Co for failing to promptly recall windshield wipers in 2002-2003 model vehicles.

Fines for violating auto regulations were increased earlier in this decade after massive recalls involving Firestone tires.

(Additional reporting by Bernie Woodall, Soyoung Kim in Detroit; Editing by Toni Reinhold, Bernard Orr, Leslie Gevirtz)
It is far better for the truth to tear my flesh to pieces, then for my soul to wander through darkness in eternal damnation.

Jet: So what kind of woman is she? What's Julia like?
Faye: Ordinary. The kind of beautiful, dangerous ordinary that you just can't leave alone.
Jet: I see.
Faye: Like an angel from the underworld. Or a devil from Paradise.
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CountDeMoney

Quote from: jimmy olsen on April 05, 2010, 07:46:28 PM
Seems rather pointless, surely this debacle has cost them hundres of millions of dollars already.

Fuck you, you fucking gimp.  Who are you to question new revenue streams.

jimmy olsen

Quote from: CountDeMoney on April 05, 2010, 07:48:13 PM
Quote from: jimmy olsen on April 05, 2010, 07:46:28 PM
Seems rather pointless, surely this debacle has cost them hundres of millions of dollars already.

Fuck you, you fucking gimp.  Who are you to question new revenue streams.
Yup, that 16.4 million will take care of the deficit. :rolleyes:
It is far better for the truth to tear my flesh to pieces, then for my soul to wander through darkness in eternal damnation.

Jet: So what kind of woman is she? What's Julia like?
Faye: Ordinary. The kind of beautiful, dangerous ordinary that you just can't leave alone.
Jet: I see.
Faye: Like an angel from the underworld. Or a devil from Paradise.
--------------------------------------------
1 Karma Chameleon point

CountDeMoney

Quote from: jimmy olsen on April 05, 2010, 07:54:28 PM
Quote from: CountDeMoney on April 05, 2010, 07:48:13 PM
Quote from: jimmy olsen on April 05, 2010, 07:46:28 PM
Seems rather pointless, surely this debacle has cost them hundres of millions of dollars already.

Fuck you, you fucking gimp.  Who are you to question new revenue streams.
Yup, that 16.4 million will take care of the deficit. :rolleyes:

Fuck you, you fucking gimp.  It'll be 16.4 million we didn't have before.

Agelastus

When CdM has an idea, he doesn't let it go easily, I see. :)
"Come grow old with me
The Best is yet to be
The last of life for which the first was made."

CountDeMoney

Quote from: Agelastus on April 05, 2010, 08:07:15 PM
When CdM has an idea, he doesn't let it go easily, I see. :)

Sometimes...well, sometimes I'm just not in a Timmay Kind of Mood.

Neil

Quote from: CountDeMoney on April 05, 2010, 07:59:52 PM
Quote from: jimmy olsen on April 05, 2010, 07:54:28 PM
Quote from: CountDeMoney on April 05, 2010, 07:48:13 PM
Quote from: jimmy olsen on April 05, 2010, 07:46:28 PM
Seems rather pointless, surely this debacle has cost them hundres of millions of dollars already.
Fuck you, you fucking gimp.  Who are you to question new revenue streams.
Yup, that 16.4 million will take care of the deficit. :rolleyes:
Fuck you, you fucking gimp.  It'll be 16.4 million we didn't have before.
No, it probably won't be.  They'll just write an extra $16.4 million off their taxes.
I do not hate you, nor do I love you, but you are made out of atoms which I can use for something else.

Zanza

This is why they care:

Quote"I think they will do whatever it takes because of what it might lead to," Toprak said about a likely Toyota challenge. "That (the fine) may very well be the basis for a class action lawsuit."


DGuller

I'm not sure if Toyota is guilty of anything, but we can sure use the money.

citizen k

Quote from: DGuller on April 05, 2010, 11:35:20 PM
I'm not sure if Toyota is guilty of anything, but we can sure use the money.
Well, they're certainly guilty of not notifying the government within five days as regulations calls for.

Tamas

This is getting pathetic.

Haven't seen so ugly protectionism for a long time. Just fucking leave them alone already.

citizen k

Quote from: Tamas on April 06, 2010, 02:03:01 AM
This is getting pathetic.

Haven't seen so ugly protectionism for a long time. Just fucking leave them alone already.

I don't see this as a protectionism issue at all. Toyota is still one of the most popular brands in the U.S.  Politicians from states where Toyota has plants don't want to see it hurt either. Toyota is getting a slap on the wrist. Now, if they don't come clean with these issues, then they will continue to be slapped. I think the other shoe has yet to drop.


Grey Fox

Quote from: Tamas on April 06, 2010, 02:03:01 AM
This is getting pathetic.

Haven't seen so ugly protectionism for a long time. Just fucking leave them alone already.

:rolleyes: I know your Gypsy heritage doesn't teach much of this little factoid but it is usually required to observe the law of a country if you want to make business there.*

*except if you're Google in China.
Colonel Caliga is Awesome.

Admiral Yi

AFAICT the government's case is based on the fact that Toyota recalled cars in other countries in September. 

Toyota should base their appeal on the claim that those recalls were intended to mollify unfounded customer hysteria, not to correct a known defect.

alfred russel

Quote from: Neil on April 05, 2010, 08:38:37 PM
Quote from: CountDeMoney on April 05, 2010, 07:59:52 PM
Quote from: jimmy olsen on April 05, 2010, 07:54:28 PM
Quote from: CountDeMoney on April 05, 2010, 07:48:13 PM
Quote from: jimmy olsen on April 05, 2010, 07:46:28 PM
Seems rather pointless, surely this debacle has cost them hundres of millions of dollars already.
Fuck you, you fucking gimp.  Who are you to question new revenue streams.
Yup, that 16.4 million will take care of the deficit. :rolleyes:
Fuck you, you fucking gimp.  It'll be 16.4 million we didn't have before.
No, it probably won't be.  They'll just write an extra $16.4 million off their taxes.

These fines aren't deductible.
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.

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