Business

Toyota accepted the fine of $16.4 million for failed reports on technical problems.
by Milota Sidorova

Toyota cause has been processed when U.S. Government decided to fine automaker with $16.4 million penalty for failing to report about technical errors on its models. The case started last year when Toyota announced it was shutting down up to thousands of thousands vehicles from the market. The same scenario happened this year, when magazine Consumer Report claimed Toytota's Lexus GX 460 had had problems with gas pedal. The reacting time in breaking moments was significantly longer and could resulted in vehicle instability to stay on the road. Toyota accepted the charge, although it reported there was no error proven in testing drives. But if there was no mistake, then why ! did it order to shut down up to 2.3 million cars and agreed to pay millions of dollars fine?According Transportation Secretary Ray LaHood Toyota didn't report safety problems as required under the law and put consumers at risk. Automakers have to report the mistakes within five business days. Toyota didn't submit any report, so far, the accusations were published by independent magazine.Although it seems there is one to blame, Toyota wasn't the only one automaker selling life threat to the market. By the end of last year, American GM shut down some models from distribution due “technical errors”. But now it is also the fight for image. Toyota is the world class automaker and viable rival to American GM or Ford or some more. Declining public and media rating can hurt the company's profits and although Toyota didn't say it was loosing the sale numbers, this situation is highly probable.

related story (sgx17040): http://www.france24.com/en/20100419-toyota-pay-record-fine-u...

by Milota Sidorova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

posted by Blog TechSource @ 3:23 PM