According to The Japan Times, Toyota is looking to pay the $16 Million fine imposed by US Govt. but in return wants to challenge the claim that it intentionally covered up the defect.
Toyota Motor Corp. is considering paying a $16.38 million fine imposed by the United States over its gas pedal problems, but is seeking to challenge the claim that it intentionally covered up the defect, sources said Saturday.
Earlier this month, the U.S. National Highway Traffic Safety Administration ordered Toyota to pay the fine, the maximum sum for a civil penalty for an automaker under U.S. laws, on the grounds that the company had covered up a defect in the gas pedal in some of its vehicle models and delayed reporting the matter to regulators.
But Toyota wants to challenge the NHTSA allegation that it hid the defect, the sources said, adding it is still possible the automaker will refuse to pay the fine if it is not given such an opportunity, they said.
Toyota has to inform the federal safety regulator whether it will pay the fine by Monday.
The NHTSA has said that Toyota hid the sticky pedal defect from it for at least four months, as it became aware of the issue Sept. 29, 2009.
Automakers are required to notify the NHTSA within five business days if they determine that a defect exists.
Toyota has consistently denied that it hid the problem. A Toyota executive earlier said the automaker “did nothing illegal.”
Against this backdrop, Toyota is now holding negotiations with U.S. authorities, requesting that it be allowed to challenge the allegation, even if it pays the fine, the sources said.
Toyota is facing a slew of lawsuits from U.S. owners of its vehicles who claim that their value has taken a beating from the recalls of the vehicles with defective gas pedals.
Toyota would be placed in a disadvantageous position in such lawsuits if it did not have an opportunity to deny the NHTSA claims, industry analysts said.
The NHTSA has said the proposed penalty is for action related to the pedal defect, adding it would continue its investigation into whether there were additional violations that warrant further penalties.
