Toyota Gets Slammed With Record Recall Penalty
The National Highway and Traffic Safety Administration has announced that Toyota Motor Corporation (NYSE:TM) will pay a record $17.35 million civil penalty for allegedly failing to report a safety defect to the federal government in a timely manner.
In June, Toyota issued a recall of 150,000 Lexus RX 350 and RX 450h luxury hybrid SUVs because of a loose floor mat that could force down the accelerator pedal. The recall was another item in a long list of problems that have plagued the Japanese automaker since 2009, and isn’t even the first recall associated with unexpected acceleration. Following a number of reports in 2009, the company issued a series of recalls that affected nearly 19 million vehicles, some of which were related to a similar issue.
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That massive string of recalls was punctuated in October by a recall of over 7.4 million vehicles for an improperly-lubricated power-window switch that could catch fire, and again in November by a 2.77 million vehicle recall of the Prius due to problems with the steering mechanism.
The $17.35 million fine is the maximum allowable under the law, as was likely levied because of Toyota’s growing history of safety concerns. ”Safety is our highest priority,” said U.S. Transportation Secretary Ray LaHood in the NHTSA statement. “With today’s announcement, I expect Toyota to rigorously reinforce its commitment to adhering to United States safety regulations.”
But Toyota isn’t the only major auto manufacturer with a growing history of safety concerns…