U.S.to seek $16M recall penalty against Toyota

[tenderloin]

WASHINGTON -- The U.S. Transportation Department says it is seeking the maximum penalty of $16 million against Toyota for failing to notify the government promptly about defective gas pedals among its vehicles.

Transportation Secretary Ray LaHood says the department has evidence that Toyota knew of the problem with sticking accelorators in late September but did not recall cars until late January.

The fine would be the largest civil penalty ever issued to an automaker by the government.

Toyota has two weeks to accept or contest the $16.375 million penalty.

Toyota has recalled more than 6 million vehicles in the United States and more than 8 million worldwide, because of acceleration problems in multiple models and braking issues in the Prius hybrid.

 

[jetblacknismo]

Good, they should pay and maybe we all can move on with this. Serves them right. But its a small price IMO

 

[demarpaint]

Wow if that sticks they'll think twice about waiting to recall cars next time. Going forward every auto maker will be certain they don't do what Toyota did. Seems to me Uncle Sam is looking for $$$$$$ and doesn't care how he gets them.

 

[KilgoreBass]

$16M is peanuts to a Co like Toyota...

 

[Scienceman]

Glad they did.

 

[LS2JSTS]

The total estimated cost to Toyota for this mess, I've read estimates of between three and five BILLION dollars.

This $16M fine is chump change to them relative to the cost of the recall, wonder why so low an amount. Obviously it's not meant to be a punitive amount.

Toyota will wish they could pay and move on. But a lot of lawyers are going to see that this is an ongoing thing for years. And many more dollars.

 

[Bluestream]

Good idea, Toyota needs to learn a lesson.

They have never had a recall before and didn't know what to do

 

[XS650]

Originally Posted By: jetblacknismo
Good, they should pay and maybe we all can move on with this. Serves them right. But its a small price IMO



+1
If it gets Toyota's and other automaker's attention, it will have served it's purpose. Question is, is it big enough a fine to get their attention?

For instance, if you take a recall that costs $100/car and is applied to 160,000 cars, that's $16 million. The financial incentive to side-step needed recalls is still there if all they are risking is $16 million.

 

[oilslick44]

Just as long as [political comment deleted] is treated the same way, I have no problem with this fine.

Edit: Slick, take your political comments some place else.

 

[demarpaint]

Originally Posted By: Troy_Built
Glad they did.



LOL Truth is I'm happy about it! A $1000 a car would have been a better #. I just didn't want to be the first one to say it.

 

[d00df00d]

Quote:
Transportation Secretary Ray LaHood says the department has evidence that Toyota knew of the problem with sticking accelerators in late September but did not recall cars until late January.

Nothing's proven yet. Let's try to reserve judgment until the case unfolds.

 

[fdcg27]

$16,000,000.00 to Toyota is like $16.00 to you or I.
That isn't really the point.
The point is that Toyota is being very publicly slapped in the face by the government of one of its most important markets.
After all these years of hearing about "The Toyota Way" and "The Toyota Production System", one has to wonder whether Toyota or its products are really any better than what GM has to offer as a company or in product.
While we haven't owned anything GM in years, the Ford we have has been as reliable as any of the Hondas we have had, and according to CR, Honda and Subaru rank ahead of Toyota.
The only GM car I've driven much in the last couple of years is a friend's G5, and it has never taken off on her unbidden.
Of course, even with the pedal floored, it would be kind of hard to tell.

 

[dime]

Originally Posted By: jetblacknismo
Good, they should pay and maybe we all can move on with this. Serves them right. But its a small price IMO

16 million is the maximum the gov. can fine in this case. otherwise i'm sure it would be more.

 

[wapacz]

Originally Posted By: dime
Originally Posted By: jetblacknismo
Good, they should pay and maybe we all can move on with this. Serves them right. But its a small price IMO

16 million is the maximum the gov. can fine in this case. otherwise i'm sure it would be more.


yeah its probably one of those rules they put in place in like 1965 or something when 16 million was worth more than it is today.

 

[dailydriver]

Originally Posted By: fdcg27
$16,000,000.00 to Toyota is like $16.00 to you or I.


Actually, it is more like $0.16 to you or I.

They have MANY TRILLION$$$$$ from all of the U.S. "consumers" ONLY buying their products for so many decades.

Yet they still take help from their own government, even though you will NEVER hear that from all of the "Gov Motors"/domestic bashing TOYboyzz on here.

 

[VNTS]

Umm

The Tread Act needs to be updated. That act limited the damages to 16 Million $ max. That is like a cup of coffee to Toyota.

To put in comparision, GM was the largest corp fined under it at 1 mil $ for defective wipers in 2001. Let see Toyota lies and covers things up and kill at least 50 people, maims over 2000 and they get a 16 million $ fine?

Puts it in perspective. LaHood on the news said he would of fined them one heck of a lot more but was limited.
Hopefully the trial lawyers will have a field day and get billions from Toyota.


Originally Posted By: demarpaint
Wow if that sticks they'll think twice about waiting to recall cars next time. Going forward every auto maker will be certain they don't do what Toyota did. Seems to me Uncle Sam is looking for $$$$$$ and doesn't care how he gets them.

 

[rszappa1]

and people will still contiue to purchase Toyotas...

 

[VNTS]

Originally Posted By: rszappa1
and people will still contiue to purchase Toyotas...


hey Toyota brought that clown Squire back to pitch their cars again, even though he is a little grayer.

Maybe they should tag team him with Joe Isuzu, Squire could say "Toyota wouldnt lie and cover up safety defects", Joe Isuzu could say "nahh" and smile

 

[GMBoy]

Originally Posted By: rszappa1
and people will still contiue to purchase Toyotas...


Sad, they don't know what they're missing.

 

[rszappa1]

They do... Goverment Motors...