NHTSA Will Seek $16.4 Million From Toyota

WASHINGTON — Just when the Toyota recalls situation appeared to be cooling down a bit, National Highway Traffic Safety Administration (NHTSA) Secretary Ray LaHood has stoked the fire again, as he announced today that the government agency will seek $16.375 million in civil penalties from Toyota.

At issue is Toyota's apparent delay in notifying NHTSA about the potential for a sticking accelerator pedal in 2.3 million of its vehicles.

"Auto manufacturers are legally obligated to notify NHTSA within five business days if they determine that a safety defect exists," the agency said today in a press release. "NHTSA learned through documents obtained from Toyota that the company knew of the sticky pedal defect since at least September 29, 2009."

Toyota, you'll remember, notified NHTSA of the pedal issue in late January of this year.

"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."

Toyota responded by releasing a short statement late Monday afternoon: "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."

Source: indiacar.com Source : http://www.insideline.com (4/5/2010)