Toyota agrees to pay $32 mn fine over recalls

By DPA, IANS
Tuesday, December 21, 2010

TOKYO - Toyota Motor Corp Tuesday said it would pay a record $32.4 million in additional fines under an agreement with the US Transportation Department.

The world’s largest carmaker agreed to pay the civil penalties as the result of two separate investigations into its recall process, the US agency said late Monday.

“Safety is our top priority and we take our responsibility to protect consumers seriously,” US Transportation Secretary Ray LaHood said.

“I am pleased that Toyota agreed to pay the maximum possible penalty and I expect Toyota to work cooperatively in the future to ensure consumers’ safety.”

Toyota failed to comply with requirements for reporting safety defects to the National Highway Traffic Safety Administration (NHTSA), the department said.

The company said it agreed to pay the fines without admitting any violation of US law.

“These agreements are an opportunity to turn the page to an even more constructive relationship with the NHTSA and focus even more on listening to our customers and meeting their high expectations for safe and reliable vehicles,” said Steve St Angelo, Toyota’s chief quality officer for North America.

In April, Toyota had agreed to pay a $16.4 million fine to settle allegations that the carmaker failed to alert authorities about faulty accelerator pedals.

Total fines for Toyota have reached $48.8 million.

Toyota’s reputation for quality and safety has been tarnished by a series of safety recalls this year, with more than 10 million cars worldwide having problems with steering, brakes and accelerator pedals.

Filed under: Economy

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