Toyota Will Pay $16.4 Million Fine over Recall

Monday, April 19, 2010

Toyota has agreed to pay a $16.4 million fine for neglecting to promptly report its sticking gas pedals to the U.S. government.

The Associated Press reports that the fine is the largest ever assessed by the government against an automaker. The government claimed Toyota knew about its gas pedals problems in September but did not issue a recall until January. Automakers are required to notify the government within five business days of discovering a potential safety defect.

An anonymous Transportation official says if Toyota pays the fine within 30 days, it can avoid going to court against the government.

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