Feb03
Toyota may be fined up to $16.4 million for recalls that took to long, Dealers fined up to $6k per car sold.
WASHINGTON -- Toyota Motor Corp. faces a possible multimillion-dollar federal fine for failing to issue timely recalls of defective vehicles, a U.S. Transportation Department official said today.
The department, headed by Secretary Ray LaHood, is considering a civil penalty against the automaker, said the official, who asked not to be identified.
Automakers that fail to recall defective vehicles in a timely manner are subject to fines of up to $16.4 million. Toyota had one recall in October and another in January.
“We have not received any official communication from NHTSA so we are unable to comment at this time,” Toyota spokeswoman Cindy Knight said in an e-mail to Automotive News today.
The Transportation official did not respond to questions about the maximum fine being considered or the timing of any decision.
“We're not finished with Toyota and are continuing to review possible defects and monitor the implementation of the recalls,” LaHood said in a statement yesterday.
He said officials from the National Highway Traffic Safety Administration flew to Japan in December “to remind Toyota management about its legal obligations” and followed up in January with a meeting at Transportation Department headquarters in Washington “to insist that they address the accelerator-pedal issue.”
LaHood added: “While Toyota is taking responsible action now, it unfortunately took an enormous effort to get to this point.”
The biggest recall fine to date was $1 million assessed against General Motors, involving windshield-wiper failure in 581,344 Chevrolet Trailblazers, Oldsmobile Bravadas, GMC Envoys and Isuzu Ascenders made in 2002 and 2003, the Transportation official said.
Dealers who knowingly sell a defective vehicle also are subject to possible fines of as much as $6,000 per vehicle. No such fine has ever been imposed, according to Transportation records.
Source: [ Automotive News , Neil Roland ]
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