Feds Target Toyota with Largest Fine Ever Levied Against an Automaker LaHood wants $16.4 million for failure to notify NHTSA of 'sticky' gas pedals.

Apr. 5, 2010  -- Transportation Secretary Ray LaHood announced today that the National Highway Traffic Safety Administration (NHTSA) will seek the largest civil penalty possible against Toyota, and the largest civil penalty ever levied against an automaker, for failing to notify the government about "sticky" gas pedals.

Toyota recalled 2.3 million U.S vehicles in January for "sticky" gas pedals that it blamed for some incidents of sudden acceleration. Under law, carmakers must tell NHTSA within five business days if they have identified a safety defect. NHTSA determined through a review of Toyota's own internal documents that the manufacturer knew of the pedal problem on September 29, 2009, four months before the recall.

On September 29, Toyota sent repair procedures for the pedals to distributors in 32 countries -- but not the U.S. -- because of complaints about the pedals and incidents of sudden unintended acceleration.

"We now have proof that Toyota failed to live up to its legal obligations," said Secretary LaHood. "Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families. For those reasons, we are seeking the maximum penalty possible under current laws."

Federal law permits NHTSA to ask for a fine of $16.375 million for the delay in notification about sticky pedals. NHTSA may levy further penalties for other additional violations if warranted.

"Safety is our top priority and we will vigorously pursue companies that put consumers at risk," said NHTSA Administrator David Strickland. "We will continue to hold Toyota accountable for any additional violations we find in our ongoing investigation."

Toyota has issued three major recalls in recent months for ill-fitting floor mats, sticky pedals and software that controls braking. In February, NHTSA began investigating how Toyota had conducted the recalls and asked the automaker for documents. As of April 5, Toyota had submitted more than 70,000 pages of documents for NHTSA officials to review.

According to figures from the federal government and Toyota, five deaths and 17 serious injuries have been traced to floor mat entrapment causing sudden acceleration in Toyota vehicles. According to both Toyota and the government, "sticky" gas pedals have not been linked to any deaths or serious injuries.

In a statement, Toyota said that it had not yet received a letter from NHTSA about the fine. "While we have not yet received their letter," said the statement, "we understand that NHTSA has taken a position on this recall. We have already taken a number of important steps to improve our communications with regulators and customers on safety-related matters as part of our strengthened overall commitment to quality assurance. These include the appointment of a new Chief Quality Officer for North America and a greater role for the region in making safety-related decisions."

The statement did not say whether Toyota would contest the fine.

Safety advocate Joan Claybrook, a former NHTSA administrator, applauded LaHood's announcement. "I think it's terrific that DOT is finally getting serious about safety," said Claybrook, "and this is a clear statement by the department that not only Toyota but other companies, if they violate the safety rules, they're going to get the maximum fine."

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