A local Toyota automotive manufacture agreed to pay a record fine of $16.4 million dollars to the NHTSA for their recent quality issue with sticking accelerator pedals. This is one of many quality issues that the manufacturing has had in the past few months.
According to the Lexington Herald Leader,In a statement from Ray La Hood, US Transportation Secretary, " I am pleased that Toyota has accepted responsibility for violating it's legal obligation to report any defects promptly." The NHTSA continues to investigate to assure that Toyota has lived up to disclosure obligations.
Although Toyota agreed to pay the stiff penalties, they are stating they did not do anything illegal. According to Hirsch's article, Toyota agreed to the settlement in an effort to close the legal issue quickly,"in order to fully focus on strengthen
the quality assurance operations."
Toyota could possibly have to endure the civil suits that will follow this fines from former customers that had issues with the vehicles. Although some of the suites will be legitimate, you can be assured not all will be. Toyota still faces a long road to recovery from this safety critical quality issue. The 16.4 million is fines may be only a drop in the bucket when all cost are total, including the cost of their reputations.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment