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March 20, 2014

Toyota Fined $1.2B for Safety Violations in Cars 
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The auto giant Toyota has been fined a record $1.2 billion to resolve a
criminal probe of safety defects in its cars. The penalty includes an
admission that Toyota misled customers about problems that forced the
cars' acceleration even as drivers tried to slow down. Attorney General
Eric Holder called the fine the largest of its kind.

Attorney General Eric Holder: "The $1.2 billion payment represents the
largest criminal penalty imposed on a car company in the history of the
United States. This is appropriate, given the extent of the deception
carried out by Toyota in this case. Put simply, Toyota's conduct was
shameful. It showed a blatant disregard for systems and laws designed to
look after the safety of consumers. By the company's own admission, it
protected its brand ahead of its own customers. This constitutes a clear
and reprehensible abuse of the public trust."

Holder says the case could serve as a model for resolving other car
safety cases, including the General Motors recall of millions of
vehicles over faulty ignition switches.

 

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