NHTSA fines Toyota $16.4 M.

Re: NHTSA fine $16.4 M.

Hold on just a minute. Let's not be overly hasty.

"... may face the maximum civil penalty of $16.4 million..."
is not the same as does face the maximum civil penalty...

I would hardly call Mr. LaHood a disinterested observer; he has a
major chunk of his professional reputaion, such as it is, riding on the
outcome of this process. Until the actual hearing he can reap the wind
by posing as a conquering knight in shining armor -- waist up photos only
as he may be riding a donkey a la Don Quixoti.

The civil penalty process involves a hearing before a supposedly
impartial administrative law judge. The administrative hearing typically
precedes any civil actions -- think class action suits. The plaintiff, Toyota,
has to be very circumspect in their defense in the administrative hearing
as they don't want to "discover" the thrust and structure of their defense
in the following civil suits, if any.

I suspect that the $16.4M is but a drop in a bucket compared to the
potential class action suit liability. It wouldn't even surprise me that
Toyota pleads "nolo contendere," no contest, -- which lies in a fuzzy gray
area between innocence and guilt -- and pay the fine just to get this suspect
administrative irritation out of the way.

Let's wait and see what happens in the administrative hearing before
we succumb to wailing and the gnashing of teeth.

 

Re: NHTSA fine $16.4 M.

Another thought comes to mind- if this is the worst they can find...

 

Re: NHTSA fine $16.4 M.

That's some strong language from a member of the cabinet.

 

Re: NHTSA fine $16.4 M.

Yeah, do you think LaHood would fine themselves (as the government has a stake in GM) if they were in Toyota's shoes? Of course, the $1 million fine against GM before the bailout doesn't count.

 

Re: NHTSA fine $16.4 M.

Why show so much angst over an automobile ?
The lawsuits and braking issues have some factual basis behind them, Toyota just has to take it as a learning experience.
Besides, how else is hybrid tech gonna reach mainstream status without this attention ?

 

Re: NHTSA fine $16.4 M.

Already the ineffectual but constantly irritating buzzing of a recently
returned persistent pest can be heard in the forums.



Where'd that Flit gun get to anyway?

 

Re: NHTSA fine $16.4 M.

$16 million is a slap on the wrist for a company the size of Toyota.

 

Re: NHTSA fine $16.4 M.

I don't believe LaHood 's joking.
This statement sounds like the GO signal to all the pending civil suits.

quote: “We now have proof that Toyota failed to live up to its legal obligations,” LaHood said

Besides, why did Bob start a thread if comments are not welcomed ?

 

Re: NHTSA fine $16.4 M.

Of course, the lawsuits are based on the theory that the SUA is caused by electronics, not the American-made accelerator pedals.

 

Re: NHTSA fine $16.4 M.

Another also: no Prius is included in this, since Prius don't use the American made CTS pedals.

Tom

 

Re: NHTSA fine Toyota $16.4 M.

I wonder what the indemnification provision reads like in the contract with CTS? May not cover the fine if it was in fact a delay by Toyota that generated the fine, but they may be obligated to pick up the recall cost.

 

Re: NHTSA fine Toyota $16.4 M.

First, as others have said, this is about toyota hiding safety information not anything to do with the prius.

Second, this is all information that has been out in the news before about CTS pedals and toyota not informing the NHTSA. The only news is the date on the documents and the amount of the fine.

Third the pedals were made in canada by a company based in the united states. Somehow people think that united states employees can't make cars. Toyota approved the design, but cts has liability insurance. Toyota can not ask cts for the fine money, it is about toyota's behavior, not about the part. I doubt toyota will ask cts for recall money.

I doubt Toyota will fight the fine. As others have said it is a small amount. It will be much worse for Toyota to go to court. If they do they will have to explain, again why they didn't hide the information they just didn't make it available. It will keep the allegation of Toyota's secrecy about safety in the news.

 

Re: NHTSA fine Toyota $16.4 M.

.
A new surcharge will be added to all 2011 Toyota window stickers:

"Your Government's Irrational Political Games Markup: $125.00* "

.

" *you still wouldn't buy a GM** hybrid anyway. admit it."

" ** GM = Government Motors"

 

Re: NHTSA fine $16.4 M.

Actually this fine is just on the CTS pedal issue. It has nothing to do with any of the hybrids. The Feds think that they should have been notified earlier by Toyota on the gas pedal issue.

They might be right if Toyota had an inkling back in Sept about what was going on and didn't notify NHTSA. But it has nothing to do with the Prius or any of the other hybrids.

 

After reviewing the reg, it doesn't look like Toyota has much grounds for appeal.

 

so what it boils down to... as soon as the unintended acceleration can be proven along with proving Toyota had prior knowledge of the defect, then they will be fined.

since there is no real proof of the defect, can there be a defect at all?

 

Dave,

Toyota admitted the defect and has been repairing it. NHTSA has documents with dates.

bob not nashing teeth. Just correcting some of the misconceptions.

http://www.cnbc.com/id/36192268

 

Re: NHTSA fine $16.4 M.

that is for sure, the real fine will be the fact Toyota is on the front of most major newspapers again being fined for violating the law. That is worth hundreds of millions, maybe billions.