Toyota to pay maximum $ 32 m fine in US safety probe

Wednesday, 22 December 2010 00:01 - - {{hitsCtrl.values.hits}}

Reuters: Toyota Motor has agreed to pay the maximum fine of $32.4 million related to two U.S. probes into its handling of a spate vehicle recalls which hurt sales and tarnished its once impeccable reputation for quality.

The settlements conclude a tumultuous year for the world’s largest automaker over the recalls of 11 million vehicles in the United States and disclosure of problems blamed by safety advocates for hundreds of crashes and the deaths of dozens of people.

The crisis prompted unprecedented government scrutiny over unintended acceleration complaints, a total of three heavy fines, and a loss of prestige and consumer confidence in Toyota’s best-selling cars.

“I am pleased that Toyota agreed to pay the maximum possible penalty and I expect Toyota to work cooperatively in the future to ensure consumer safety,” Transportation Secretary Ray LaHood said in a statement that accompanied the late night announcement in Washington on Monday.

Toyota said it agreed to the National Highway Traffic Safety Administration (NHTSA) fines without admitting any violation of law.

“It’s positive that Toyota will get past this event and can focus on quickly restoring its brand image in the U.S. market,” Yoshihiro Okumura, general manager at Chibagin Asset Management in Tokyo, said of the fines. “U.S. sales should be the major driver for the stock.”

Toyota said separately on Tuesday it planned to boost its group-wide global vehicle sales by 3 percent to 8.61 million units in 2011, led by 9 percent growth in the United States to 1.90 million vehicles.

Toyota was the worst performer among major automakers in the United States this year, with a rise of just 0.2 percent in its single-biggest market, which expanded 11.2 percent in the year to date.