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Toyota Agrees To Pay More Fines

by Jeff Gilbert
WWJ AutoBeat Reporter

Toyota has agreed to pay $32.4 million dollars in additional fines to federal regulators, who charged the company has been dragging its feet on safety issues.  This brings the total amount of fines Toyota's paid this year to $48.8 million dollars.

In paying the fines, Toyota did not admit to violating any of its legal obligations.

These agreements are an opportunity to turn the page to an even more constructive relationship with NHTSA and focus even more on listening to our customers and meeting their high expectations for safe and reliable vehicles," said Toyota's Chief Quality Officer Steve St. Angelo, in a statement released by the company.

These fines are related to two separate recalls.  One involved pedals that could become stuck in floor mats.  The other involved a steering issue in trucks.

Toyota has recalled a total of 11 million vehicles worldwide this year.

The recalls have impacted Toyota sales in North America this year.  But, the automaker says it expects North American sales to grow by nine per cent in 2011, and global sales to grow by three per cent.  The only place Toyota isn't anticipating growth is its home market of Japan.

In April, Toyota agreed to pay the maximum fine allowed under law for a single case - $16.4 million - for failing to promptly alert U.S. regulators to safety problems over sticking accelerator pedals. Under federal law, automakers must notify the National Highway Traffic Safety Administration within five days of determining that a safety defect exists and promptly conduct a recall.

At the time, Toyota denied attempting to hide a safety defect and said it agreed to the penalty to avoid a lengthy legal battle with the government.

"Safety is our top priority and we take our responsibility to protect consumers seriously,'' said U.S. Transportation Secretary Ray LaHood. ``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 is still facing dozens of lawsuits from families of people killed or injured in crashes linked to unintended acceleration. The government's safety agency has received about 3,000 reports of sudden acceleration incidents involving Toyota vehicles during the past decade, including 93 deaths. NHTSA, however, has confirmed only the four deaths from the California crash. 

As the government continues its investigation of Toyota's electronic throttle control systems, the company says its own investigations of the electronics shows no problems.  Toyota has promised to be more public with safety issues, and to be quicker to inform the public when it finds problems.

"We are grateful to Toyota drivers for their confidence in the quality and reliability of our vehicles, as reflected in our position as America's leading retail auto brand," read the statement from St. Angelo.  "In keeping with the values that have always defined Toyota, we will always put our customers first in everything that we do."

Follow Jeff Gilbert on Twitter @jefferygilbert

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