On Tuesday, Japanese carmaker Toyota came through on its commitment to pay the $16.4 million fine (the largest in history given to a carmaker) dictated by the National Highway Traffic Safety Administration (NHTSA) for delaying the huge recall at the beginning of the year.
The largest civil penalty ever assessed against an auto manufacturer by NHTSA was announced in the beginning of April. It made public the fact that Toyota knew about its accelerator problems much sooner than it announced the recall. Toyota had until April 19 to respond in writing.
When agreeing to pay the fine, the Japanese carmaker denied any wrongdoing. According to US law, a $6,000 penalty for each defective vehicle sold by Toyota is possible, amounting to $13.8 billion. A law that limits individual fines against a manufacturer however makes for the maximum the government could seek reach $16.375 million.
"We agreed to this settlement in order to avoid a protracted dispute and possible litigation," the manufacturer said. "We regret that NHTSA tentatively concluded that they should seek a civil penalty."
The nightmare is, however, not over for Toyota. The carmaker has been warned by US Transportation Secretary Ray LaHood that it is still under scrutiny, despite the publicly advertised quality control measures taken by Toyota.
“These measures are important measures, but the proof is in the pudding,” was quoted as saying by The New York Times.“It’s fine to have measures in place, but we must make sure they are carried out. We will continue to be vigilant about the safety of drivers in America."
The largest civil penalty ever assessed against an auto manufacturer by NHTSA was announced in the beginning of April. It made public the fact that Toyota knew about its accelerator problems much sooner than it announced the recall. Toyota had until April 19 to respond in writing.
When agreeing to pay the fine, the Japanese carmaker denied any wrongdoing. According to US law, a $6,000 penalty for each defective vehicle sold by Toyota is possible, amounting to $13.8 billion. A law that limits individual fines against a manufacturer however makes for the maximum the government could seek reach $16.375 million.
"We agreed to this settlement in order to avoid a protracted dispute and possible litigation," the manufacturer said. "We regret that NHTSA tentatively concluded that they should seek a civil penalty."
The nightmare is, however, not over for Toyota. The carmaker has been warned by US Transportation Secretary Ray LaHood that it is still under scrutiny, despite the publicly advertised quality control measures taken by Toyota.
“These measures are important measures, but the proof is in the pudding,” was quoted as saying by The New York Times.“It’s fine to have measures in place, but we must make sure they are carried out. We will continue to be vigilant about the safety of drivers in America."