ID :
117296
Sun, 04/18/2010 - 09:45
Auther :

Toyota mulling paying U.S. fine over handling of pedal defect

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NAGOYA, April 17 Kyodo -
Toyota Motor Corp. is considering paying a $16.38 million fine imposed by the
United States in connection with the gas pedal problem with its vehicles, but
is seeking an opportunity to refute the claim that it intended to cover up the
problem, sources close to the matter said Saturday.
Earlier this month the U.S. National Highway Traffic Safety Administration
ordered Toyota to pay the fine, the maximum sum for a civil penalty for an
automaker under U.S. laws, on the grounds that the automaker had covered up a
defect in the gas pedal in some of its vehicle models and thus delayed
reporting to regulators.
But Toyota wants to challenge the NHTSA allegation that it hid the defect, the
sources said, adding it is still possible the automaker will refuse to pay the
fine if the NHTSA does not give it such an opportunity, they said.
Toyota has to inform the NHTSA whether it will pay the fine by Monday.
The NHTSA has said that Toyota hid the sticky pedal defect for at least four
months from the federal safety regulator, as it became aware of the defect on
Sept. 29, 2009.
Automakers are required to notify the NHTSA within five business days if they
determine that a defect exists.
Toyota has consistently denied that it hid the defect, while admitting its
response was late because of the company's insufficient internal communication
systems. A senior Toyota official earlier said the automaker ''did nothing
illegal.''
Against this backdrop, Toyota is now holding negotiations with the U.S.
authorities, requesting them to allow it to express its denial of the
allegation, even if it pays the fine, the sources said.
Toyota is now facing a slew of lawsuits from U.S. owners of its vehicles who
claim that their value has taken a beating from the recalls of the vehicles
with defective gas pedals.
Toyota would be placed in a disadvantageous position in such lawsuits if it did
not have a refutation opportunity, industry analysts said.
The NHTSA has said the proposed penalty is for action related to the pedal
defect, adding it would continue its investigation to see if there were
additional violations that warrant further penalties.
==Kyodo

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