A National Highway Traffic Safety Administration (NHTSA) press release announced that Toyota Motor Corporation has settled on paying an additional $32.425 million in civil penalties for its handling of auto recalls. The decision comes after two independent investigations by officials. Toyota is expected to reportedly pay the maximum fines permitted under the law, which will be $16.375 million in one case and $16.050 million in another.
The U.S. Department of Transportation argued that Toyota failed to adhere to requirements for reporting safety defects to the NHTSA provided under the National Traffic and Motor Vehicle Safety Act. Under federal law, auto manufacturers are required to inform the NHTSA within five business days of discovering a safety defect and to promptly announce a recall.
The NHTSA’s first investigation evaluated when Toyota first learned of the pedal entrapment defect on certain vehicles and whether the automaker informed the agency quickly enough. According to the press release, Toyota recalled 55,000 all-weather floor mats in September 2007. In August 2009, pedal entrapment was connected to a fatal auto accident involving a Lexus model vehicle. The NHTSA then reviewed collision evidence and other data and determined that removing floor mats in previously recalled vehicles was unsatisfactory and that Toyota accelerator pedal redesign was necessary. Toyota then recalled 3.8 million Toyota and Lexus vehicles for floor mat entrapment in October 2009, which was expanded in January 2010 to include an additional 1.1 million vehicles.
The second investigation focused on whether Toyota informed the NHTSA in a timely manner about defective steering relay rods in multiple Toyota models that could lead to loss of steering control. In 2004, Toyota initiated a recall in Japan, claiming that only vehicles there were affected. However, in 2005, almost 1 million vehicles were recalled in the United States. By May 2010, the NHTSA received additional information relating to these vehicles that the automaker had not previously disclosed.
Vehicle defects put the lives of motorists, passengers, and pedestrians in unnecessary danger. As in this case, auto manufacturers can face sanctions for failing to promptly inform officials about known vehicle design flaws or manufacturing defects. Individuals injured and family members of those killed in auto accidents caused by vehicle defects may also be able to seek compensation from negligent manufacturers. If you have any questions about an accident that you believe was caused by a defective vehicle, contact the California vehicle defect injury lawyers at Panish Shea & Boyle LLP today. Call 1-877-800-1700.