Toyota's Troubles Could Be Accelerating

AFP - Japanese automaker Toyota re

WASHINGTON — The U.S. Congress will try to establish who is to blame for at least 13 auto-related deaths over the past decade, as public hearings are launched on Tuesday on General Motors Co’s slow response to defective ignition switches in cars. Despite tougher laws being enacted in 2000 and 2010 to encourage automakers and the National Highway Traffic Safety Administration (NHTSA) to aggressively root out safety concerns, it took GM more than a decade to acknowledge publicly that it had a potentially fatal problem.

WASHINGTON — The U.S. government announced a US$1.2 billion settlement with Toyota Motor Corp. on Wednesday and filed a criminal charge alleging the company defrauded consumers by issuing misleading statements about safety issues in Toyota and Lexus vehicles. Attorney General Eric Holder said it is the largest financial penalty of its kind ever imposed on an auto company. Under a deferred prosecution agreement, an independent monitor will review policies, practices and procedures at the company.

Toyota said it had agreed to pay about $1.1 billion to settle a class action lawsuit launched by US vehicle owners affected by a series of mass recalls from the Japanese automaker. Toyota did not accept any blame but agreed to compensate owners who argued that the value of about 16.3 million vehicles took a hit from dozens of deadly accidents allegedly caused by Toyota vehicles speeding out of control in 2009.

(NHTSA)

Toyota President Akio Toyoda says he will testify at a congressional hearing next week on the automaker's massive recalls. Toyoda said in a statement he looks "forward to speaking directly with Congress and the American people." The automaker has recalled 8.5 million vehicles globally to address problems with accelerator pedals and brakes.