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 gold-plated reputation for excellence and customer satisfaction such a beating? Part of the can be explained by Toyota’s drive for performance, rather than the efficiency and attention to detail made the company famous and is with changing late-20th-century worldwide. The combination of cost-cutting and expansion under the previous presidents may be the end to decades of reputation that put the Toyota brand all other major automakers.

In company President Katsuaki (2005-2009) boasted about squeezed more than $10 from global operating in the previous six years. This on cost cutting came at a when Toyota was experiencing profit growth and increased market share. At the time, the top U.S. executive, Jim Press, his bosses in Japan that quality was slipping.

The root of their problems is that the was hijacked, some years by anti-[Toyoda] family, financially pirates, Press charged in a interview with Bloomberg Once the highest-ranking American at the with a seat on the board of Press left in 2007 to Chrysler as vice-chairman and president, but from there after year’s bankruptcy. The financial he said, didn’t have the necessary to maintain a customer-first

The Toyoda family elders the rains to Hiroshi Okuda when Tatsuro Toyoda was with a stroke 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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