U.S. gov't: Toyota to pay record $16.4M fine

WASHINGTON - (AP) - The government said Monday that Toyota hasagreed to pay a record $16.4 million fine for failing to properlynotify federal authorities about a dangerous pedal defect.

The fine is the largest-ever penalty paid by an automaker to theU.S. government. Transportation Secretary Ray LaHood said that byfailing to report safety problems, Toyota put consumers at risk.

The penalty is connected to a January recall of 2.3 millionvehicles with sticking accelerator pedals. The government saysToyota knew about the problem in late September and failed toreport the defect within five business days, as required by law.

Toyota said in a statement that it agreed to the penalty "toavoid a protracted dispute and possible litigation," allowing itto move forward.

The company denied the government's allegation that it violatedthe law, saying it "did not try to hide a defect to avoid dealingwith a safety problem."

advertisement | advertise on News 12

Trending Video

Dozens of motorcycles lined a street in Greenpoint 1 Annual bike blessing held in Greenpoint
Interview on 'Brooklyn Eats' festival 2 Interview on 'Brooklyn Eats' festival
VIDEO: Extended coverage of Bensonhurst's racing simulation rooms 3 VIDEO: Extended coverage of Bensonhurst's racing simulation rooms

advertisement | advertise on News 12


Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.