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Toyota Made To Accept Record $16M Fine

From a delighted Associated Press:

A recalled accelerator pedal from a Toyota Camry sits on a workbench at City Toyota in Daly City, California.

Toyota set to agree on record fine, AP source says

By Ken Thomas, Associated Press Writer

April 19, 2010

WASHINGTON – Toyota Motor Corp. is expected to agree to a fine of more than $16 million for failing to promptly report to the government problems with sticking gas pedals on its vehicles, a Transportation Department official said.

Toyota faces a Monday deadline to accept or contest the $16.4 million fine, the largest ever assessed by the government against an automaker, over evidence it knew about the defective gas pedals in September but did not issue a recall until January.

Under federal law, automakers are required to notify the government within five business days when they find a potential safety defect.

The Transportation official said Toyota is expected to pay the full amount of the fine within 30 days as a way of avoiding going to court against the government. The official was not authorized to speak publicly and spoke only on condition of anonymity.

The official said Toyota did not intend to admit wrongdoing explicitly but the company still faces dozens of personal injury and wrongful death lawsuits in federal courts. Federal prosecutors and the Securities and Exchange Commission are conducting investigations related to the recalls.

From the government’s viewpoint, the official said, the agreement to pay the full fine constituted an acceptance of responsibility for hiding the safety defect in violation of the law.

Toyota declined comment on the fine…

The penalty is the largest the government can assess under law. Without the cap, government lawyers said Toyota could have faced fines of $13.8 billion, or $6,000 for each of 2.3 million vehicles that were sold with defective pedals.

Transportation officials have not ruled out additional fines. The department is reviewing whether Toyota delayed for six weeks the late January recall of the 2009-2010 Venza in the United States to address floor mats that could entrap the accelerator pedal after making a similar recall in Canada…

As we’ve noted previously, it looks like the government is threatening to slap Toyota with more fines if they don’t agree to this deal right away.

Apparently, if you are a thug in some things you are a thug in all things. In any case, it looks the Obama administration has found another source of revenue.

Still, you have to wonder if they’re trying to drive Toyota out of the country. Perhaps that is Mr. Obama’s ultimate goal.

After all, he owes his job to the UAW and their union brethren.

This article was posted by Steve on Monday, April 19th, 2010. Comments are currently closed.

6 Responses to “Toyota Made To Accept Record $16M Fine”

  1. canary says:

    So where’s the 16 million going since it won’t go to any individual car owner with defects?

  2. Astravogel says:

    I’d bet the fine money goes to the Barak H. Obama
    Presidential Library, after ‘disappearing’ in transit (a
    small town in Arkansas where most of my orders
    spend some time.)

    Democratica Delinda Est!

  3. proreason says:

    “you have to wonder if they’re trying to drive Toyota out of the country”

    Steve nails it.

  4. NoNeoCommies says:

    My Toyota runs just fine!
    I want Congress recalled.

  5. Liberals Make Great Speedbumps says:

    I’ve said it here before but I’ll say it again Toyota has a customer for life in me. GM, Chrysler or Ford could offer me one of their POS cars at this point for free and I’d tell them to shove it. Well actually, I’d accept it and sell the POS to someone.

  6. Mithrandir says:

    You know…..when you think about it, it’s probably best to let a chronically sick person die. Why continue to hope for improvement when the cancer has taken over?

    The same can be said for our government. The weeds will eventually die when all the garden food either leaves the garden, or gets rid of all the weeds.

    Perhaps it is better to kill off Toyota, and all the other companies, and let the sick society, that is America, die off to regrow again. Why stop the inevitable? Save up, retreat, let it crumble, and build it up again. That is the only way to stop lawyers from passing more bills and gov’t from spending more money.

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