U.S. Fines Toyota $17 Million for Not Quickly Reporting Problems, Delaying Recall The U.S. government hit Toyota Motor Corp. with a record $17.4 million fine for failing once again to report problems in a timely manner to federal regulators and for delaying a safety recall, the Claims Journal reported in December. The fine against the world’s biggest automaker from the National Highway Traffic Safety Administration, the agency that monitors vehicle safety, is the maximum allowed by law. It’s the fourth fine levied against Toyota in the past two years for similar infractions, and it’s the largest single fine ever assessed against a car company over safety defects. In 2010, Toyota paid a total of $48.8 million in fines for three violations. The latest infraction raises questions about whether the fines are big enough to deter automakers that withhold information from NHTSA, and whether the government agency can do enough to stop repeat offenses. The fine is a tiny fraction of Toyota’s earnings. The company posted a $3.2 billion profit in the third quarter alone. Toyota said it agreed to pay the penalty without admitting any violation of the law. It also pledged to strengthen data collection and evaluation to make sure it takes action more quickly.
“We agreed to this settlement in order to avoid a time-consuming dispute and to focus fully on our shared commitment with NHTSA to keep drivers safe,” Ray Tanguay, the company’s chief quality officer, said in a statement. The latest fine stems from a June recall of SUVs from Toyota’s Lexus luxury brand. About 154,000 of the 2010 Lexus Rx 350s and RX 450h models were recalled because the driver’s-side floor mats can trap the gas pedal and cause the vehicles to speed up without warning. The problem was similar to troubles from 2010 that prompted a series of embarrassing safety recalls by the company. Toyota has recalled more than 14 million vehicles globally to fix sticky gas pedals and floor mats. The recalls tarnished the company’s sterling reputation for reliability and cut into sales. Recently its sales have rebounded as it appeared to put the safety problems in the rear-view mirror. But NHTSA said that Toyota failed to report acceleration problems in the Lexus SUVs within five business days of discovering them, as required by U.S. law. The agency said it began investigating the SUVs early this year after receiving complaints
Global Electric Vehicle Sales Could Reach 3.8 Million by 2020, Research Firm Says
Sales of plug-in electric vehicles and of hybrid electric vehicles are expected to grow exponentially throughout the decade as the number of affordable vehicles increases and the charging infrastructure to support them continues to improve, says a new report that claims that the market for electric vehicles is still in its early stages.
Nissan Leaf
According to the report from Pike Research, this will lead to sales of more than 3.8 million a year by 2020. “Sales of electric vehicles have not lived up to automakers’ expectations and politicians’ proclamations, but the market is expanding steadily as fuel prices remain high and consumers increasingly seek alternatives to internal combustion engines,” says senior research analyst Dave Hurst. “Indeed,
sales of plug-in electric vehicles will grow at a compound annual growth rate of nearly 40% over the remainder of the decade, while the overall auto market will expand by only 2% a year.” Hybrid electric vehicles, such as the Toyota Prius, which use a traditional petrol or diesel engine alongside an electric motor, have been on general sale throughout the world for over a decade, and as cheaper mass-produced plug-in electric vehicles such as the Nissan Leaf, plus plug-in hybrids electric like the Chevrolet Volt (that use a petrol or diesel engine to charge the electric battery) have started to come to the global market since 2010. In the US, the latest figures from the Electric Drive Transportation Association (EDTA) projected that sales of plug-in electric and plug-in hybrid vehicle sales more than doubled in 2012, hitting 44,888 compared with 17,735 in 2011 (this includes business fleet as well as individual consumer sales). However, the figure represents less than 0.5% of all types of cars sold in the country over the same period, estimated by EDTA in December to total 13.08 million, and this week projected to reach 14.5 million, according to Ward’s Auto and Autodata.
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from consumers. In May, the agency contacted Toyota about the problem, and it took the company a month to report 63 incidents of floor mats trapping gas pedals, NHTSA said. “I expect Toyota to rigorously reinforce its commitment to adhering to United States safety regulations,” U.S. Transportation Secretary Ray LaHood said. Next year, the maximum fine NHTSA can assess will double to $35 million. Toyota, NHTSA said, agreed in a settlement to make internal changes to comply with U.S. laws. In an August interview, Jim Lentz, Toyota’s highest-ranking U.S. executive, told The Associated Press that the company was obeying the law in giving information to NHTSA. In 2010, Toyota paid two $16.4 million fines and one $16 million fine, all for reporting violations. NHTSA said at the time that the company didn’t report problems with sticking gas pedals in a timely manner, nor did it report problems with floor mats trapping gas pedals. Toyota also told NHTSA that a recall of commercial trucks in Japan for a steering problem did not affect U.S. vehicles. But a year later, the company recalled similar vehicles in the U.S.
Top Safety Picks for 2013
The Insurance Institute for Highway Safety (IIHS) recently awarded 13 vehicle models with its Top Safety Pick+ award for 2013. The vehicle models named as IIHS’ Top Safety Pick+ for 2013 include the Acura TL, Dodge Avenger, Chrysler 200, Ford Fusion, Honda Accord two-door, Honda Accord four-door, Kia Optima, Nissan Altima, Subaru Legacy, Subaru Outback, Suzuki Kizashi, Volkswagen Passat and Volvo S60. To earn the Top Safety Pick+ accolade, all 13 vehicles received “good” or “acceptable” ratings in the IIHS’ new small overlap test, an evaluation that simulates safety performance when the front section of a vehicle hits another vehicle or permanent object, such as a tree or utility pole. The IIHS said small overlap crashes account for roughly 25% of frontal crashes that result in serious injuries or fatalities to occupants. The IIHS said midsize, luxury cars were the first group of vehicles evaluated through its small overlap test. Midsize, moderately priced cars will be evaluated next, and the organization will announce additional Top Safety Pick+ winners after tests are conducted. Safety results for small SUVs will be announced this spring.
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