Failing to report a safety defect in a timely manner can cost automakers a lot of money. Just ask Toyota, which was hit yesterday with a record fine of $17.35 million by the U.S. Department of Transportation.
The Japanese manufacturer waited too long to inform the National Highway Traffic Safety Administration (NHTSA) about the potential for accelerator pedal entrapment caused by an unsecured or incompatible driver's side floor mat in the 2010 Lexus RX 350 and RX 450h.
The NHTSA has received 28 complaints about this issue, which lead to a couple of injuries and even one death, according to reports. In May 2012, the agency contacted Toyota, but the latter took nearly a month to announce a safety recall -- much longer than the five business days required by U.S. law.
Toyota has recalled more than 14 million vehicles globally in recent years to fix sticky gas pedals and floor mats, including 154,036 Lexus RX crossovers.
How big of a blow is this for Toyota? The $17.35 million fine (the maximum penalty allowed) adds to the $48.8 million in civil penalties that resulted from three separate investigations into its handling of auto recalls in 2010.
The NHTSA plans to double the maximum fine to $35 million next year.
Source: Automotive News
The Japanese manufacturer waited too long to inform the National Highway Traffic Safety Administration (NHTSA) about the potential for accelerator pedal entrapment caused by an unsecured or incompatible driver's side floor mat in the 2010 Lexus RX 350 and RX 450h.
The NHTSA has received 28 complaints about this issue, which lead to a couple of injuries and even one death, according to reports. In May 2012, the agency contacted Toyota, but the latter took nearly a month to announce a safety recall -- much longer than the five business days required by U.S. law.
Toyota has recalled more than 14 million vehicles globally in recent years to fix sticky gas pedals and floor mats, including 154,036 Lexus RX crossovers.
How big of a blow is this for Toyota? The $17.35 million fine (the maximum penalty allowed) adds to the $48.8 million in civil penalties that resulted from three separate investigations into its handling of auto recalls in 2010.
The NHTSA plans to double the maximum fine to $35 million next year.
Source: Automotive News