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Toyota Fined For Failing To Quickly Report Safety Problems

Originally posted on CBS Dallas / Fort Worth:

A Toyota RAV4 (R) is displayed alongside other Toyota vehicles at a Toyota dealership. (credit: Justin Sullivan/Getty Images)

A Toyota RAV4 (R) is displayed alongside other Toyota vehicles at a Toyota dealership. (credit: Justin Sullivan/Getty Images)

DETROIT (AP) — The U.S. government has slapped Toyota Motor Corp. with a record $17.4 million fine for failing once again to quickly report problems to federal regulators and for delaying a safety recall.

The fine from the National Highway Traffic Safety Administration, the agency that monitors vehicle safety, is the maximum allowed by law. It’s the fourth fine levied against Toyota in the past two years for similar infractions, and it’s the largest single fine ever assessed against a car company over safety defects. In 2010, Toyota paid a total of $48.8 million in fines for three violations.

The latest infraction raises questions about whether the fines are big enough to deter automakers that withhold information from NHTSA, and whether the government agency can do enough to stop repeat offenses. The…

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A financial analyst by profession with a focus on value investing. Likes Benjamin Graham's investing style

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