Japanese automaker Toyota is facing a record fine from federal regulators for failing to warn safety officials in a timely fashion about gas pedal problems that have led some vehicles to accelerate unintentionally, resulting in injuries and deaths.

The company, which recently passed General Motors to become the world’s top automaker, is facing the maximum civil penalty of $16.4 million, which could increase pending further investigation.

The previous record fine for an automaker was a $1 million penalty levied against GM in 2004.

The Department of Transportation alleges that Toyota neglected to report “the dangerous ‘sticky pedal’ defect for at least four months, despite knowing of the potential risk to consumers.”

Under U.S. law, the company had five days to notify the National Highway Traffic Safety Administration.

“We now have proof that Toyota failed to live up to its legal obligations,” Transportation Secretary Ray LaHood said in a statement. “Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families.”

The defect has resulted in over six million Toyota vehicles being recalled in the U.S. The problem has also been blamed in over 50 deaths in the U.S.

The company has two weeks to decide whether to accept the fine or challenge it. If the company chooses to challenge the fine, the two sides would have to settle the dispute in court. That may be something the automaker wishes to avoid because it would only shine a brighter light on the company’s safety problems.

Toyota did not say whether it would accept the fine, but did say that it is working to resolve the issues with its vehicles.

“We have already taken a number of important steps to improve our communications with regulators and customers on safety-related matters as part of our strengthened overall commitment to quality assurance,” Toyota said in a statement.

“These include the appointment of a new chief quality officer for North America and a greater role for the region in making safety-related decisions,” the automaker said.

Print PDF