DocM Posted March 19, 2014 Share Posted March 19, 2014 Toyota will be constantly monitored, essentially on probation, for 3 years. If they screw up Toyota executives could be jailed. Doesn't bode well for GM which is under investigation for ignition key/switch defects that caused numerous fatalities. http://www.usatoday.com/story/money/cars/2014/03/19/toyota-settlement-unintended-acceleration/6595345/ Toyota to pay $1.2B to settle criminal probe The Justice Department announced Wednesday that Toyota will pay $1.2 billion to settle a criminal probe of its handling of the reports of unintended acceleration in its vehicles and subsequent recalls beginning in 2009. The settlement -- the largest criminal penalty imposed on a car company in U. S. history -- was announced by the Justice Department and Toyota this morning. "Today we can say for certain that Toyota intentionally concealed information and misled the public about the safety issues behind these recalls," Attorney General Eric Holder said in announcing the settlement. "Put simply, Toyota's conduct was shameful," he said. The investigation was spearheaded by the U.S. Attorney's office and FBI in New York. Christopher Reynolds, chief legal officer, Toyota Motor North America, said in a statement this morning: "Entering this agreement, while difficult, is a major step toward putting this unfortunate chapter behind us. We remain extremely grateful to our customers who have continued to stand by Toyota.." The settlement calls for the government to ultimately dismiss its case in exchange for Toyota's payment and continued cooperation. The deal also calls for an independent monitor how Toyota handles safety communications, its internal handling of accident reports and its processes preparing and communicating technical bulletins. Toyota says it will record $1.2 billion in after-tax charges against earnings in the fiscal year ending March 31. Some independent safety watchdogs sounded impressed. The "settlement with Toyota is a game changer," says Clarence Ditlow of the Center for Auto Safety. "Until today, auto makers faced insignificant fines and no criminal penalties under the Vehicle Safety Act." He points out, too, that if Toyota doesn't follow through, executives will face the threat of prison. > > Link to comment Share on other sites More sharing options...
aviator189 Posted March 19, 2014 Share Posted March 19, 2014 damn, did not see such a huge fine coming, but safety is a must in vehicles, so understandable. Link to comment Share on other sites More sharing options...
timster Posted March 19, 2014 Share Posted March 19, 2014 it really is a shame that companies can remain in business knowing that they ######ed something up, and then wait until its too late before notifying anyone that they in fact ######ed something up. 1 death is too much. Gerowen 1 Share Link to comment Share on other sites More sharing options...
123456789A Posted March 19, 2014 Share Posted March 19, 2014 Does $1.19 billion go to the lawyers? Sandor 1 Share Link to comment Share on other sites More sharing options...
DocM Posted March 19, 2014 Author Share Posted March 19, 2014 IIRC federal fines get split between the involved agencies; the DoJ to help pay for enforcement, NHTSA, the courts and the treasury. The prosecutors, investigators etc. are civil service and on salary. 123456789A 1 Share Link to comment Share on other sites More sharing options...
Rippleman Posted March 19, 2014 Share Posted March 19, 2014 A vehicle is a complex machine, I am surprised that they are as safe and problem free as they currently are. But having said that, anything to make them safer (within reason) is a good thing. timster and Draconian Guppy 2 Share Link to comment Share on other sites More sharing options...
IsItPluggedIn Posted March 19, 2014 Share Posted March 19, 2014 Watch them slap a small meaningless fine on GM being a local business. Toyota from Japan they will hit hard. The Evil Overlord, Draconian Guppy and MightyJordan 3 Share Link to comment Share on other sites More sharing options...
Draconian Guppy Posted March 20, 2014 Share Posted March 20, 2014 Watch them slap a small meaningless fine on GM being a local business. Toyota from Japan they will hit hard. True, but if they do, toyota will have grounds for appeal. Link to comment Share on other sites More sharing options...
COKid Posted March 20, 2014 Share Posted March 20, 2014 Watch them slap a small meaningless fine on GM being a local business. Toyota from Japan they will hit hard. The fine was well deserved. Should have been more, actually. Link to comment Share on other sites More sharing options...
The Evil Overlord Posted March 20, 2014 Share Posted March 20, 2014 The fine was well deserved. Should have been more, actually. Ok, fair enough, but let me ask then, why wasn't ford fined equally as high for their attempt at covering up the cruise control issues in their Maverick and Explorer range, both UK and StateSide? (I even remember something about an investigator going undercover to find out the flaw was in quite a few of ford's range and the affected cars would accelerate full throttle, and breaking did very little <deaths were involved>) Link to comment Share on other sites More sharing options...
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