Toyota has agreed to pay a record $16.4 million fine to US safety regulators in response to the government's claim that it knowingly delayed a massive accelerator pedal recall in January, a government official said.
The settlement between the US Department of Transportation and the world's largest carmaker is expected to be signed today in Washington, the official said.
The Obama administration determined that Toyota knowingly delayed a recall for a potentially dangerous mechanical glitch that could cause accelerator pedals on some of its best-selling models, including the Camry, to become stuck.
By agreeing to pay the $16.4 million fine, Toyota is "accepting responsibility for hiding this safety defect" from the National Highway Traffic Safety Administration "in violation of the law", the senior Transportation Department official said. The official asked not to be named because the settlement with Toyota had not been finalised.
A Toyota spokesman in Japan said that the automaker had not made a final determination on how it would respond to the proposed fine from US officials.
In addition, US safety regulators are continuing their investigation of Toyota and have not ruled out further action, the official said.
Today marks the end of a two-week period in which Toyota had to either agree to pay the fine or to file an appeal.
Toyota's decision to pay the fine will not release it from potential liability in lawsuits over unintended acceleration in Toyota and Lexus vehicles, the US official said.
Some lawyers estimate Toyota faces potential civil liability of more than $10 billion in US courts.
In a further embarrassment, Toyota has been forced to shut down production of the Lexus GX 460 SUV over a problem with its electronic control system and now faces a decision on whether to recall the vehicle.
Shares of Toyota were down almost 2 per cent in early afternoon trade in Tokyo.
Reuters