Record Fine: Government hits Toyota - Cleveland 19 News Cleveland, OH

Toyota Slapped with Hefty Fine

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WASHINGTON D.C. (CNN) - The Transportation Department says it is seeking a more than 16-million dollar penalty against Toyota for not notifying the government quickly enough about defective gas pedals.

Transportation Secretary Ray LaHood says there were signs Toyota knew about gas pedal problems last fall, but did not initiate a recall until January.

The fine would be the largest civil penalty the government has ever issued against an automaker.         

Despite Monday's decision, Toyota is announcing more new incentives to bring more customers into its dealerships.
 
The automaker has been offering special deals since early March, hoping to make up for its giant safety recalls.
 
The approach has worked, sales jumped 40 percent last month.

 

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