No Brakes on Toyota’s Problems

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Automakers selling cars in the United States are obligated to report defects and issues with their vehicles to the National Highway Transportation Safety Administration (NHTSA) within about 5 days of their discovery.  Toyota didn’t report the now infamous problems with its brakes for at least 4 months after the defect was discovered.  The gap between discovery and reporting of the problems could result in a civil penalty for Toyota of $16.375 million, the maximum penalty allowed.  Transportation Secretary Ray LaHood is quoted on Washingtonpost.com, “We now have proof that Toyota failed to live up to its legal obligations,” LaHood said. “Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families. For those reasons, we are seeking the maximum penalty possible under current laws.”