DOT seeks maximum Civil Penalty against Toyota

[xcel]

Maximum fine means the cancellation of one large Toyota event in the bigger scheme of things.

Wayne Gerdes - CleanMPG - April 5, 2010

NHTSA vs. Toyota… Fortunately, Toyota’s “sticky or stuck” accelerator pedal issue is dissipating quickly for all concerned.

In a release by U.S. Transportation Secretary Ray LaHood today, the National Highway Traffic Safety Administration (NHTSA) is seeking the maximum civil penalty of $16.375 million against Toyota Motor Corporation for failing to notify the auto safety agency of the dangerous “sticky pedal” defect for at least four months, despite knowing of the potential risk to consumers. Approximately 2.3 million vehicles in the U.S. were recalled in late January for the sticky pedal defect. The penalty being sought against Toyota would be the largest civil penalty ever assessed against an auto manufacturer by NHTSA.

Auto manufacturers are legally obligated to notify NHTSA within five business days if they determine that a safety defect exists. NHTSA learned through documents obtained from Toyota that the company knew of the sticky pedal defect since at least September 29, 2009. That day, Toyota issued repair procedures to their distributors in 31 European countries and Canada to address complaints of sticky accelerator pedals, sudden increases in engine RPM, and sudden vehicle acceleration. The documents also show that Toyota was aware that consumers in the United States were experiencing the same problems.

“We now have proof that Toyota failed to live up to its legal obligations,” said Secretary LaHood. “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. For those reasons, we are seeking the maximum penalty possible under current laws.”

Under NHTSA’s current authority, the maximum possible civil penalty for related violations is $16.375 million. The penalty announced today relates specifically to the “sticky pedal” defect and NHTSA is still investigating Toyota to determine if there are additional violations that warrant further penalties.

“Safety is our top priority and we will vigorously pursue companies that put consumers at risk,” said NHTSA Administrator David Strickland. “We will continue to hold Toyota accountable for any additional violations we find in our ongoing investigation.”

On February 16, NHTSA launched an investigation into the timeliness and scope of the three recent Toyota recalls and required the automaker to turn over documents and explanations related to its adherence to U.S. auto safety laws. NHTSA made a preliminary determination on the fine announced today based on a review of documents Toyota has provided. To date, Toyota has submitted more than 70,000 pages of documents, which NHTSA officials are continuing to review.

NHTSA has the most active defect investigation program in the world, opening or closing an investigation almost every week. Over the last three years, NHTSA’s defect and compliance investigations have resulted in 524 recalls involving 23.5 million vehicles.

Toyota’s response

While we have not yet received their letter, we understand that NHTSA has taken a position on this recall. 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. These include the appointment of a new Chief Quality Officer for North America and a greater role for the region in making safety-related decisions.

[ILAveo]

Usually there is room to negotiate regulatory fines down. Typically other means of penance are required. If I were NHTSA I'd be expecting Toyota to put access to its "black box" data on the table.

[xcel]

Hi Rich:

___Given all the issues surrounding this, I bet Toyota will simply pony up to the counter and make the payment to make it go away...

___Toyota Canada had a somewhat cryptic response to the NHTSA announcement?

Toyota Canada Statement re: US National Highway Traffic Safety Administration Announcement

Earlier today, the US National Highway Traffic Safety Administration (NHTSA) issued a statement identifying Toyota Canada as a recipient of repair procedures issued on September 29, 2009 to 31 European countries to address complaints of sticky accelerator pedals, sudden increases in engine RPM, and sudden vehicle acceleration. This statement is incorrect. Toyota Canada Inc. was not a party to that communication.

___Good Luck

___Wayne

[noflash]

Are there any criminal penalties if people were injured or killed during those four months?

nf

[xcel]

Hi All:

Toyota has more "but little" additonal to say..

Toyota's Statement on NHTSA Penalty Announcement

Toyota Motor Corporation (TMC) received notice from NHTSA on April 5 (in the United States) that NHTSA is seeking a civil penalty. TMC is now considering its response. Toyota has and will continue to practice its philosophy of satisfying consumers with high quality vehicles that are safe and reliable, and responding to consumer feedback with honesty and integrity.

___Good Luck

___Wayne

[lightfoot]

Originally Posted by noflash

Are there any criminal penalties if people were injured or killed during those four months?

nf

What happened with the exploding Pinto gas tank situation? With the flipping Ford Explorers? People definitely died in both of those cases. Was anyone prosecuted for those design errors?

For these situations to be prosecutable it wold be necessary to prove that the deaths or injuries were a direct result of a design error, and that people's well-being was intentionally put at risk. If you make a mistake it probably isn't criminal, but if you knowingly produce a dangerous design, that could be criminal.

Whether a prosecutable situation is actually prosecuted probably depends on politics, resources in the prosecutor's dept, etc., etc.

[noflash]

What if you "knowingly" hide the defect from the public and safety regulators that is killing people?

nf

[PaleMelanesian]

In my mind, the fact that Toyota notified dealers in all their Euro markets and even Canada, but said nothing in the USA, is worthy of a fine.

[WriConsult]

This (well-deserved, IMO) fine is specific to the withholding information about sticky accelerator pedals, not floormats. We know the floormats have killed a few people, but I haven't heard of any firm evidence that sticking pedals have killed anyone.