The transportation department says it is seeking the maximum penalty, $16.4 million, against Toyota for failing to promptly notify the government about defective gas pedals in some of its vehicles.
The penalty would be the largest civil penalty ever levied against a carmaker by the National Highway Traffic Safety Administration.
In 2004, General Motors paid a record $1 million fine for responding too slowly on a recall of nearly 600,000 vehicles over windshield wiper failure.
Transportation Secretary Ray LaHood says evidence shows that Toyota knew of the problem with sticking gas pedals in late September but did not issue a recall until late January.
“We now have proof that Toyota failed to live up to its legal obligations,” LaHood said in a 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.”
Under federal law, automakers must notify the department’s National Highway Traffic Safety Administration within five days of determining that a safety defect exists and promptly conduct a recall.
Toyota officials did not immediately respond to the announcement. The automaker has two weeks to accept or contest the penalty.
Toyota has recalled more than 6 million vehicles in the U.S., and more than 8 million worldwide, because of acceleration problems in multiple models and braking issues in the Prius Hybrid.
To see how ATVN has covered Toyota’s recalls, click the linked stories below:
Toyota Faces Investigations
Corolla Recalls
Toyota Recalls Prius
Toyota Lawsuit
Toyota’s Problems Hit L.A.
Toyota Finds Fix