Ecombd

Tuesday, April 20, 2010

Toyota Agreed to Pay Record Fine for Delayed Recall of Faulty Pedals

Toyota has agreed to pay a record amount of fine worth $16.4 million for making a delay in recalling faulty pedals. The automaker has decided to pay such a huge amount in its attempt to resolve a complaint filed by National Highway Traffic Safety Administration (NHTSA). This is the maximum amount for fine over safety issue as per the US law.

The company did not report in public about the possible risk associated with the faulty pedals and this was the violation of law. However, Toyota said that it had no intention of hiding its defected pedals, but accepted the responsibility and was ready to pay the fine.

Ray LaHood, secretary of US Transportation, is happy that the company accepted its responsibility on this mistake. Well, this could be good as well as bad for Toyota. Good in the sense that it did not go for any argument, rather has agreed to pay the fine promptly, while the bad part is that the issue regarding the faulty pedals could cost company’s goodwill.

Related article:

Money Control

0 comments: