Investing

Toyota Could Have Been Fined $13.8 Billion--NHTSA

The government cap on fines that the NHTSA division of The Transportation Department can levy on any one car company for a single violation of the agency’s rules is $16.735 million. That is the fine the NHTSA will force the Japanese car company to pay for failing to disclose timely information accelerator problems on 2.4 million of its cars which were eventually recalled. NHTSA says it may add another fine because the accelerator flaw was based on two mechanical issues and not one.

NHTSA said that it would have charged Toyota $13.8 billion, or $6,000 for each defective vehicle but caps prevented that. The difference between that number and the current fine of $16.735 is ridiculous and should lead Congress to change the system under which DOT can fine car companies which have egregiously violated  federal laws.

Douglas A. McIntyre

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