Thaindian News

By Ranjan Bhaduri
Apr 20, (THAINDIAN NEWS) Troubled Japanese carmaker Toyota Motors which is still trying to get over the unprecedented recalls affecting millions of its cars across the globe recently agreed to pay a hefty fine for acting wisely on the gas pedal problems in its cars. It is paying a record amount of $16 million in fine. Ray LaHood, the U.S. Transportation Secretary said that the company, once known for the sturdiness and safety of its cars, put the US consumers at risk by not disclosing the adequate information about the faulty accelerator in its car models. The whopping $16.38 million fine is by far the highest penalty slapped on a carmaker by the federal government, as it has been reported. The company had a choice to contest the fine slapped on it but it decided to oblige by the order. It agreed to pay the amount on Monday.

By accepting the hefty fine, the company can evade approaching court to fight the federal government. The company has been recalling several of its models over the last few months. Recently it recalled its luxury SUV Lexus GX 460 model. The recall which is almost unprecedented in the industry has resulted in the company’s shares going down and its shareholders filing a case against it.

It has been alleged by the US federal government and US transport authority that Toyota knew about the gas pedal issue but informed the customers 4 months later in January 2010. Toyota however, has refuted the claim that it hid the facts knowingly but also admitted that things could have been tackled in a better way.