Toyota facing $16m fine

Toyota was facing a $16m (£10.4m) fine last night after the US government ruled the company had failed to provide adequate notice regarding defective accelerator pedals. In a statement , US transportation secretary Ray LaHood confirmed the National Highway Traffic Safety Administration (NHTSA) is seeking $16.375m – the maximum civil penalty. The NHTSA said documents obtained from Toyota showed the company had been aware of the accelerator problem since 29 September 2009, when it issued repair procedures to distributors across 31 European countries and Canada. Toyota issued a recall of 2.3m vehicles in the US, but not until late January. "We now have proof that Toyota failed to live up to its legal obligations," said LaHood. "Worse yet, they knowingly hid a dangerous defect for months from officials, and did not take action to protect millions of drivers and their families." Toyota released a statement yesterday acknowledging the NHTSA's action, but did not indicate whether or not it would pay the fine. If it accepts the penalty it will be the largest sum ever brought against a car manufacturer by the NHTSA.