P&A Providers & Administrators
MenuMENU
SearchSEARCH

Toyota Agrees to $16.4 Million Fine

April 18, 2010
2 min to read


WASHINGTON — Toyota Motor Corp. is expected to agree to pay $16.4 million to settle charges by the U.S. government without admitting that it knowingly hid evidence of defects from safety regulators, a senior U.S. Transportation Department official told The Wall Street Journal.


An agreement that doesn't require Toyota to admit wrongdoing could help the company defend itself against the numerous civil lawsuits pending in U.S. courts, the official said. The payment would be the largest ever assessed against an auto maker in connection with an alleged violation of U.S. vehicle safety laws, Transportation Department officials said.

Ad Loading...


A Toyota spokeswoman said Sunday that the company would make a statement Monday about the civil penalty. People familiar with the automaker's deliberations said the company is expected to agree to the settlement.


The fine is relatively small compared with Toyota's sales and assets, but it is another in a series of blows to the reputation of a company that was consumers and rivals once a held up as a paragon in the auto industry for the quality of its engineering.


Plaintiffs' lawyers who have sued the automaker likened the agreement to a no-contest plea. "It is Toyota saying, 'We will pay, but won't admit we should pay,'" said Houston attorney Mark Lanier, who has filed several Toyota suits. "But in this case, the government should not be settling for this. This is not your normal case."


Under pressure from U.S. highway safety regulators, Toyota in January recalled 2.3 million vehicles to repair sticky accelerators that could be slow to slow to return to idle.


Earlier this month, U.S. Transportation Secretary Ray LaHood charged that Toyota officials knew about the sticky pedal problem for four months before disclosing it to federal safety authorities.

Ad Loading...


The U.S. investigation, conducted by the Transportation Department's National Highway Traffic Safety Administration, concluded that Toyota knew of the "sticky pedal" defect as early as Sept. 29, 2009 when the company sent instructions for repair procedures to distributors in 31 European countries and Canada to respond to complaints about the sticky pedals and sudden acceleration. Documents show Toyota was aware of similar issues with its vehicles in the U.S., but didn't agree to a U.S. recall until January, the agency said two weeks ago.

More Industry

Photo of the back of an electric Mercedes
Industryby Hannah MitchellJune 10, 2026

Auto Prices Ride May Moderation

Flat ATPs and asking prices clocked in below long-term averages for the month, though some segments saw significant price gains, reported Cox Automotive.

Read More →
Photo of white Toyota car in front of dealership
Industryby Hannah MitchellJune 9, 2026

Auto Retail Families Get Out While the Getting’s Good

Kerrigan Advisors’ first-quarter Blue Sky Report shows a sharp uptick in buy-sell deals as more retailers take advantage of handsome values while seeking to escape market risk.

Read More →
daytime, front of car dealership Lexus of Vancouver
Industryby Lauren LawrenceJune 3, 2026

Holman Opens New Lexus Dealership

Located in the heart of Clark County, Lexus of Vancouver features a multi-level showroom, more than 30 service bays, an indoor drive for drop-off and pick-up and a fleet of courtesy vehicles.

Read More →
Ad Loading...
Subwoofer in trunk of car.
Industryby Lauren LawrenceMay 26, 2026

Ownership Priorities are Shifting

A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.

Read More →
Man's hand holding gas pump in fuel tank of white car
Industryby Hannah MitchellMay 26, 2026

Pump Price Jump Calculated

ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.

Read More →
Graphic showing previous week's truck and SUV segment prices
Industryby StaffMay 20, 2026

Black Book: Weekly Market Update

Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.

Read More →
Ad Loading...
Photo of dealership sign with Toyota logo
Industryby Lauren LawrenceMay 19, 2026

Arkansas Auto Group Acquires First Indiana Rooftop

Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.

Read More →
Headshot photo of Antonio Filosa, Stellantis CEO
Industryby Hannah MitchellMay 19, 2026

Stellantis to Dive Into U.S. Lending

The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.

Read More →
Photo of the rear of a new BMW iX SUV
Industryby Hannah MitchellMay 12, 2026

New-Vehicle Prices Rise

With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.

Read More →
Ad Loading...
Graphic of car segments' results the previous week
Industryby StaffMay 12, 2026

Black Book: Weekly Market Update

Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.

Read More →