Toyota Receives Record Fine From NHTSA From Vehicle Recalls

2 Июн 2015 | Author: | No comments yet »
Toyota Fine-S

Toyota Penalty for Hiding Defects More Than a Fine

April 19, 2010 federal safety regulators that Toyota agrees to pay a $16.4-million fine for hiding defects related to sudden but will stop short of full legal responsibility for withholding safety information. The Highway Traffic Safety announced April 5 that it seek to penalize Toyota the amount it is allowed by law to levy. is by far the largest penalty ever by the NHTSA. The previous largest penalty paid by an automaker was $1 levied against General in 2004 for delaying a windshield recall.

The penalty is the largest the could assess under a auto safety law enacted a massive recall of Bridgestone/Firestone tires. Consumer advocates pressed lawmakers to increase the arguing that they to act as a suitable deterrent. Without the government lawyers said could have faced up to $13.8 billion.

By paying the civil penalty, Toyota is responsibility for hiding safety from NHTSA in violation of the a senior Transportation Department said.

Even if Toyota does not admit guilt, federal said, paying the sizable would indicate that the broke the law, and Plaintiff have said they to use the fine as evidence in litigation. faces scores of personal-injury and lawsuits alleging that defects in its vehicles have crashes, injuries, and fatalities.

In the of public opinion, paying the speaks volumes. But at the end of the day, the are simply background noise in of the civil litigation, said Arsenault, a plaintiff’s attorney in La. What’s really important are the that were the catalyst for the

Toyota said it agreed to the to avoid a lengthy legal but denied the government’s allegation it broke the law. In a statement, acknowledged that we could done a better job of sharing information within our global and outside the company, but we did not try to hide a to avoid dealing with a problem.

Toyota’s Reputation

How did Toyota’s reputation for engineering excellence and satisfaction take such a Part of the problem can be explained by drive for bottom-line performance, than the car-making efficiency and to detail that made the famous and is credited with late-20th-century manufacturing worldwide. The of cost-cutting and rapid expansion the previous three presidents may be the end to of reputation building that put the brand above all other automakers.

In 2005 company Katsuaki Watanabe (2005-2009) about having squeezed than $10 billion from operating costs in the previous six This focus on cost came at a time when was experiencing excellent profit and increased global market At the time, the company’s top U.S. Jim Press, warned his bosses in that vehicle quality was

The root cause of their is that the company was hijacked, years ago, by anti-[Toyoda] financially oriented pirates, charged in a recent interview Bloomberg News. Once the American at the company, with a on the board of directors, Press in 2007 to join Chrysler as and president, but departed from after last year’s The financial pirates, he said, have the character necessary to a customer-first focus.

The Toyoda family elders the rains to Hiroshi Okuda when Tatsuro Toyoda was with a … and the company’s were thought to be waning. and his team turned things embarking on one of the most aggressive expansions in automotive history. 1995 and the end of 2009, Toyota doubled, to 50, the number of overseas and manufacturing facilities in North Asia, and Europe. In conjunction this rush in rapid Takashi Araki, a project at parts maker and Toyota Aisin Seiki, told in 2003, The pressure is on to cut costs at stage.

By the end of Fujio Cho’s (1999-2005) Toyota had further costs by making the entire process cheaper and faster trimming parts, production and time to market. And during the bubble years through sales and share prices But it was during this time Jim Press warned his bosses quality was slipping and that were stepping up their

The global financial crisis and along with the increasing of the National Highway Traffic Administration, and others, combined to the reputation of the once venerable In June 2009, Akio succeeded Watanabe, and said it had an annual goal to boost sales by as many as 700,000 a year, more than times the previous increase. In of 2010, he further stated a congressional committee, I fear the at which we have grown may been too quick. Priorities confused, and we were not able to think, and make improvements as as we were able to before.

New Sales

But will this reputation for quality and customer affect it’s bottom

In monetary terms, the NHTSA is largely symbolic, given balance sheet. The company had assets of $23.6 billion as of 31, 2009 and as of April 24, 2010, has an operating profit of as much as to 800 million for the year ended 31. (In February they forecast an $300 million loss for the time period.) The last of 2009 saw Toyota realize a of $1.7 billion (after net losses for a year up to the last of 2009).

November of 2003 Toyota had a capitalization of $110 billionmore that of GM, Ford, and DaimlerChrysler (As of March 2010, despite its Toyota is valued at $132 But, Toyota’s credit was cut by Moody’s Investors Service 21, 2010) because it expects at the carmaker to stay at a low level at least 2012.

Toyota figures for February 2010 an almost 9% decline, with the major automakers reporting percentage increases over a year ago. For January, monthly sales fell 16% a year ago, dropping to than 100,000 for the first since 1999.

Toyota Fine-S

In response to the numbers lagging from the heralded recalls. Toyota has incentives the likes of which have never before The carmaker in March started no-interest loans, discount and free maintenance for U.S.

Despite continued profits, the being paid by Toyota for its reputation is sluggish sales, expensive credit, warranty on more than 8 million vehicles, at lease 180 consumer and lawsuits, and the erosion of one of their selling-points — resale

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