Friday, April 23, 2010

Toyota pays $16.4 million fine, made it back in less than two hours

On April 19, Toyota paid a fine of $16.4 million to the US Department of Transportation, the largest fine ever levied against an automaker, for its role in concealing the sticky accelerator pedal problems and other quality issues. As is often customary with such fines, Toyota admitted no wrongdoing, but the company is still vulnerable to civil and criminal complaints, as well as ongoing Justice Department and Securities and Exchange Commission investigations.

There are some who question the effectiveness of fining a corporation without holding individuals accountable, as the fines are ultimately paid by the company's shareholders, while the company can shrug off the expense as a cost of doing business. Moreover, while $16.4 million is a considerable sum, Toyota earned nearly $22 million each hour in 2009, based on its $185 billion annual revenues.

http://www.nytimes.com/2010/04/20/business/global/20toyota.html

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