Toyota hit with record fine over recall

Motor Authority ·

19 December 2012

Toyota hit with record fine over recall
The automaker has been hit with a new $17.4 million fine in the US.

Just two years after Toyota paid fines totaling US $48.8 million, including a then-record single fine of $16.4 million, the automaker has been hit with a new $17.4 million fine in the US over a delayed pedal entrapment recall on 2010 Lexus RX 350 and RX 450h models.

The NHTSA contacted Toyota in May, after receiving several reports of pedal entrapment from owners of 2010 Lexus RX models. In June, Toyota responded to the NHTSA, admitting that 63 such incidents, some dating back to 2009, had been reported on the Lexus crossover.

Toyota then followed up with the recall of some 150,000 RX models, including both gas and hybrid variants, but the NHTSA saw the response as coming too late after the initial reports. In turn, it’s fined Toyota $17.4 million over the incident, the highest amount ever charged to an automaker.

As part of the settlement, Toyota avoids admitting it was at fault in the incident, but agrees to further restructuring of its quality assurance group. It will also undertake a review of all safety-related issues as a result of this latest fine.

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Written by

Kurt Ernst

Published 19 December 2012