With all the hubbub around Toyota's unintended acceleration debacle, the New York Times reports that the United States' Department of Transportation will be seeking the highest civil fine ever (per automotive recall) allowed by the Tread Act: $16.375 million.
This is "because the company had failed to promptly notify the government about potential problems with accelerator pedals."
For reference, Automotive News states that Toyota waited "at least" four months before announcing the sticky-accelerator issue, which companies would normally have up to five days to report to the National Highway Traffic Safety Administration.
Here's what a few of the players in the game have to say:
Ray Hood, U.S. Secretary of Transportation: "We now have proof that Toyota failed to live up to its legal obligations...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."
Toyota: "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."
Another such step includes the formation of a "global quality committee, with 70 representatives from around the world, which will be responsible for assuring that problems are shared among the company's units in various regions."
Joan Claybrook, former NHTSA head, in response to the fine: "Safety matters and [the NHTSA is] going to be tough as nails...That's very appropriate. They caught Toyota red-handed."
Sid Shapiro, Wake Forest University Law Professor, VP Center for Progressive Reform: "It's good news that NHTSA is being an aggressive regulator, but you have to have doubts whether a $16 million fine is going to have a deterrent effect on automobile companies that are worth billions of dollars." [remember, Daimler just got hit with a $185 million fine for bribes that DIDN'T end in deaths...that we know of. - Ed.]
Ed Kim, AutoPacific Inc.: "One of the biggest reasons to fight the fine would be to defend themselves from the language used by the Department of Transportation...That would seem to provide some firepower to attorneys that are suing the company."
Toyota has up to two weeks to contest the claim.
By Phil Alex
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