Toyota Motor Corp has agreed to a record fine of $17.35 million for failing to report a safety defect to the US government in a timely manner. Toyota announced a recall of 1,54,036 2010 Lexus RX 350 and RX 450h vehicles in June.
“We agreed to this settlement in order to avoid a time-consuming dispute and to focus fully on our shared commitment with NHTSA to keep drivers safe,” Ray Tanguay, chief quality officer of Toyota North America, said .
Federal law requires automakers to notify the safety agency within five business days of determining safety defect. Toyota notified a month after it acknowledged the defects.