Toyota Widens Recall, Pays Record Penalty

Japanese automotive giant Toyota Motor Corp on Tuesday widened its safety recall to some of its vehicle models, just a day after paying a record high fine of 416.4 million. The recall order involves some 34, 000 units of Lexus GX 460 and Land Cruiser Prado, which added up to the 10 million units earlier pulled out.

Meanwhile, analysts said that Toyota showed its vulnerabilities when it paid the fine.

A day after paying record fine in the United States, Toyota Motor Corp. announced on Tuesday a widened global safety recall, which could potentially drag further down the already embattled Japanese carmaker.

The latest recall involved two vehicle models – the Toyota Lexus GX 460 and Land Cruiser Prado – which amounts to more than 34, 000 units sold worldwide. The pullout of the said car models was due to safety issues showing high risks of rollover accidents.

Toyota has earlier recalled some 10 million vehicles worldwide due to faulty accelerators and brake systems, prompting a US government investigation.

On Monday, Toyota has agreed to pay a record fine of $16.4 million, the biggest penalty amount imposed against a carmaker in the US. The government said that the car company has intentionally hid the accelerator defect from its clients resulting to more than 50 deaths.

In a statement issued on the same date, the company said that they have agreed to pay the penalty imposed by the government to avoid further dispute on the issue and other possible litigations.

The company also stood firm on its claims that it did not hide the problem of faulty accelerators.

Meanwhile, many of the industry analysts said that Toyota’s action showed the vulnerability of the company from civil and criminal lawsuits in the US. To date, there are at least 97 cases filed against the carmaker, mostly from families of the victims who are seeking damages.




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