If not for statutory cap, Toyota would face civil penalties of $13.8 billion [View All]

[Omaha Steve]

Source: washington Post

By Peter Whoriskey

If not for statutory limits, Toyota would be subject to civil penalties of $13.8 billion for waiting to notify federal regulators of a sticky pedal defect, the National Highway Traffic Safety Administration told the automaker in a letter.

The regulators announced this week that they are seeking to fine the automaker only a small fraction of that amount, or $16.4 million, the highest possible penalty under the law.

"The gravity of Toyota's apparent violations is severe and potentially life-threatening," NHTSA chief counsel O. Kevin Vincent wrote to Toyota in a letter dated April 5. "The result of these decisions by Toyota was to expose millions of American drivers, passengers and pedestrians to the dangers of driving with a defective accelerator pedal."

Under the law, the penalty for failing to notify regulators of a safety defect is $6,000 a car. Toyota had to recall 2.3 million for the sticky pedal.


Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/04/09/AR2010040905132.html

---

Boxes containing documents on Toyota cases are ready to be wheeled into a federal courthouse in San Diego, where dozens of lawsuits against the carmaker will be consolidated. (Jae C. Hong/associated Press)