Toyota hit with an additional $32 million in fines over recalls

posted on:
December 21, 2010


The U.S. Transportation Department announced Monday night, Dec. 20, that Toyota will pay an additional $32 million in penalties related to its recent automobile recalls. The fines are the result of two recent federal investigations into how Toyota handled the recent recalls, which involved millions of vehicles in the United States and abroad, for issues of sudden unintended acceleration and brake defects. The latest fines are the steepest allowed by law, and are in addition to a $16.375 million fine Toyota paid in April.

Investigators say Toyota officials did not comply with federal requirements for notifying the National Highway Traffic Safety Administration (NHTSA) of potential safety defects prior to the recalls.

This is the latest blow for Toyota in its recall nightmare, which involved more than 8 million vehicles since the second half of 2009, and continued recalls as late as August 2010.

In December, U.S. District Judge James V. Selna, who is presiding over the multidistrict legislation on Toyota lawsuits, ruled that dozens of Toyota vehicle owners can proceed with a class-action lawsuit for economic loss claims. The plaintiffs in these cases seek damages for the diminished market value of their cars.

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