Toyota to pay record fine for defect reporting lapse

(December 18, 2012) Toyota has agreed to pay a record $17.35 million fine to the National Highway Traffic Safety Administration to settle claims related to the timeliness of its June 2012 recall to address the potential for accelerator pedal entrapment caused by unsecured or incompatible driver’s side floor mat in the 2010 Lexus RX 350 and RX 450h.

Toyota did not admit to any violation of its obligations under the U.S. Safety Act.

The fine is a record civil penalty for a single violation by an automaker and the maximum amount the department's National Highway Traffic Safety Administration can assess, government regulators said today.

Ray Tanguay, chief quality officer of Toyota North America, stated: “Toyota is dedicated to the safety of our customers, and we continue to strengthen our data collection and evaluation process to ensure we are prepared to take swift action to meet customers' needs.  We agreed to this settlement in order to avoid a time-consuming dispute and to focus fully on our shared commitment with NHTSA to keep drivers safe.”

"Safety is our highest priority," U.S. Transportation Secretary Ray LaHood said in a statement. "With today's announcement, I expect Toyota to rigorously reinforce its commitment to adhering to United States safety regulations."

Toyota has recalled more than 14 million vehicles globally in recent years to fix sticky gas pedals and floor mats.

NHTSA said it contacted Toyota about the latest issue in May this year after it noticed a trend in vehicle owner questionnaires.

Toyota advised NHTSA a month later that it was aware of 63 alleged incidents and said it would recall 154,036 Lexus RX 350s as well as 2010 RX 450h vehicles to address the defect.

Federal law requires automakers to notify NHTSA within five business days of determining that a safety defect exists and to conduct a recall.

Sources: Toyota Motor Company, Automotive News