The U.S. Transportation Department’s decision to fine Toyota $16.4 million, the largest penalty permitted, made front page news in a number of newspapers Tuesday, including The New York Times http://www.nytimes.com/2010/04/06/business/06toyota.html?ref=todayspaper
and The Washington Post.
http://www.washingtonpost.com/wp-dyn/content/article/2010/04/05/AR2010040503200.html
We understand that the government, namely the transportation department and the National Highway Traffic Safety Administration (NHTSA), legally could not impose a stiffer fine. But it seems like a pretty tiny snap on the wrist to only penalize an auto giant like Toyota that amount. Its crumbs to a company like Toyota, over the foolish handling of a fatal problem that has lead to dozens of deaths and the recall of millions of vehicles.
And we’re not the only ones to think that.
Safety Research and Strategies (SRS) agreed with our “slap-in-the-wrist” assessment, but added “we’re glad to see any government agency get back their regulatory mojo after eight moribund years of the Bush administration.” http://www.safetyresearch.net/2010/04/06/16-4-million-reasons-why-it-ain%E2%80%99t-over-yet-for-toyota-sua/
The government levied the penalty against Toyota for not promptly notifying government safety officials about mishaps involving it cars’ accelerator pedals. That problem has allegedly led to the sudden accelerations of cars, allegedly causing accidents that have killed dozens of people and prompted several hundred lawsuits.
“We now have proof that Toyota failed to live up to its legal obligations,” Transportation Secretary Ray LaHood said in a prepared statement. “Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families.”
SRS raised some questions of its own.
“People need to remember: as NHTSA and Toyota have both acknowledged, sticking accelerator pedals have nothing to do with Sudden Unintended Acceleration,” SRS president Sean Kane said on the group’s Web site. “In fact, owners have complained to NHTSA about experiencing SUA incidents after getting the sticky accelerator pedal recall fix.”
The SRA also had this to say about the fine, which Toyota has two weeks to contest.
“We’re also very interested in seeing if NHTSA will take Toyota back to the woodshed for failing to initiate its floor mat recall in a timely fashion,” the SRS said on its site. “But let’s keep our eyes on the prize, folks: we need Toyota to identify the other root causes that can’t be explained by floor mats and driver error. Punishing Toyota doesn’t do much to resolve the financial woes and real safety concerns of drivers who are stuck with these vehicles.”
Attorney Gordon Johnson
Chair Traumatic Brain Injury Litigation Group, American Association of Justice
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