U.S. to demand Toyota records to ascertain timeliness of recalls
The National Highway Traffic Safety Administration is about to announce that it is using its "statutory authority" to obtain documents from troubled Japanese auto giant Toyota to make sure it conducted its three big recalls in a timely manner.
"Safety recalls are very serious matters and automakers are required to quickly report defects," Transportation Secretary Ray LaHood said in a statement about to be released.
I'll quote here directly from the NHTSA release so you can see what the agency is after:
"The auto safety agency is requiring Toyota to provide documents showing when and how it learned of the defects affecting approximately 6 million vehicles in the U.S. alone. The probe will examine how the manufacturer learned of these defects, such as through consumer complaints or factory testing. Investigators are also looking into whether Toyota discovered the problems during pre-production or post-production of the affected vehicles. Officials are checking whether Toyota has covered all affected models in its recent recalls to ensure Toyota did not miss any problems. The agency will obtain information on production data, incidents, complaints, warranty complaints, copies of tests, dates of meetings, timelines, and supplier information.
NHTSA has the authority to seek civil penalties for a variety of violations by manufacturers, equipment suppliers, registered importers and vehicle customizers. If agency officials determine that an auto manufacturer violated its statutory obligations, the manufacturer could be liable for a maximum of $16.4 million in civil penalties."
Additional government pressure -- Congress is already nearly demanding that Toyota chief Akio Toyoda testify before the body -- is the last thing Toyota needs right now.
Follow me on Twitter at @theticker
February 16, 2010; 1:14 PM ET
Categories: Corporations , The Ticker | Tags: Akio Toyoda, Toyota Prius, Toyota problems, toyota, toyota recall model and years
Save & Share: Previous: Obama begins to make good on nuclear power pledge
Next: Rep. Issa supports subpoena of Toyota president -- but can he do that?
Posted by: prossers7 | February 16, 2010 3:23 PM | Report abuse
Posted by: lostinthemiddle | February 16, 2010 3:28 PM | Report abuse
Posted by: Sanju | February 16, 2010 6:33 PM | Report abuse
The comments to this entry are closed.