Toyota may face federal fines for vehicle recall, Congress to hold hearings

Toyota may face federal fines for vehicle recall, Congress to hold hearings

The auto giant, Toyota, has undergone significant damage to their brand as they’ve issued an unprecedented recall due to faulty accelerator pedals and floor mats. Not only are they losing public trust faster than John Edwards at a Democratic Convention, but they may also face federal charges in the recall mess. Toyota’s U.S. sales plummeted 16% in the past month and the Obama administration has leveled accusations against the Japanese carmaker stating that they stalled on initiating the recall. Letters were sent from two members of Congress to Toyota CEO Yoshimi Inaba.

Henry Waxman, Democratic Chairman of the House Committee on Energy and Commerce and Subcommittee Chairman Democratic Congressman Bart Stark sent letters exploring the way the recall has been conducted. On January 28, 2010 it was announced that a hearing will be held on February 25, 2010 to investigate the matter further. You may read a letter sent to the Honorable David Strickland of the National Highway Traffic Safety Administration regarding the February 25, 2010 hearing in pdf format here:

Regarding the hearing, Chairman Waxman stated, “Like many consumers, I am concerned by the seriousness and scope of Toyota's recent recall announcements. I look forward to learning more about the steps Toyota is taking to address safety defects, and I hope that the automaker will continue to cooperate with the National Highway Traffic Safety Administration to get unsafe vehicles off our roads. Our hearing will help us better understand how quickly and effectively Toyota and the National Highway Traffic Safety Administration responded to consumer complaints about the safety of the recalled Toyota vehicles."

Additionally, Chairman Edolphus Towns of the Oversight and Government Reform Committee released a statement today demanding further inquiry as well. Chairman Towns stated that he wants further clarification regarding the Toyota recall and the way the matter was handled. A hearing will be held on February 10, 2010 titled, “Toyota Gas Pedals: Is the Public at Risk?”

Toyota has announced that a pedal fix is underway and for owners of recalled vehicles to contact their dealers immediately.
 

Dan Daigle, service manager at Lee Toyota, holds a shim that will be used to repair springs in the gas pedal systems of recalled Toyota automobiles, Wednesday, Feb. 3, 2010, in Topsham, Maine. Toyota Motor Corp. has issued the parts to fix sticky gas pedals but the 4.2 million customers affected by the recall will have to wait until technicians are trained. (AP Photo/Robert F. Bukaty)

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Toyota may face federal fines for vehicle recall, Congress to hold hearings