Why Record Fine Is Good for Toyota
Rick Newman submits:Is $16.4 million a lot of money? The government seems to think so. In a stern-sounding announcement, the Transportation Department has said it is imposing the "maximum civil penalty" against Toyota (TM) for taking too long to tell the government about the "sticky-pedal" defect that ultimately led to the recall of 2.3 million U.S. cars. Automakers have five days to tell the government about a safety problem once they know about it. Transportation Secretary Ray LaHood says that Toyota waited at least four months before telling the feds about the sticky-pedal problem. The resulting fine, according to DOT's announcement, "would be the largest civil penalty ever assessed against an auto manufacturer." Sounds severe. But Toyota would be getting off cheap by paying the fine. In fact, it might be just what Toyota needs to put the recall nightmare behind it and start repairing the damage.Complete Story »
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