Toyota Recall Update: $16 million fine by U.S. government

By Peter Chubb - Apr 6, 2010

There are reports that Toyota Motor Corp. could face a fine by the U.S. government up to $16 million, as they failed to notify them in time about accelerator and brake problems. This is what led to the recall of 8 million vehicles worldwide – 6 million of which were in the United States.

According to an article in Shreveport Times, a document has been obtained that proves that Toyota knew of the problem in the September, but did not act on it until January. Transportation Secretary Ray LaHood obtained these documents from the Japanese automaker.

The U.S. government is angry that Toyota knew of this problem but decided to hide it from the public, which was very dangerous. It is for this reason that the U.S. government is seeking a fine of $16.375 million. It is uncertain if Toyota will pay or fight the fine.

The Japanese has just two weeks to contest the fine. We recently learned that Toyota has made certain steps that something like this never happens again.

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Also See: 2011 Toyota Tundra: 54,000 trucks recalled in Canada and US