Toyota Recall Crisis

The United States Department of Transportation has decided to fine Toyota Motor Corp. $16.375 million (18.5 billion won).

The Department of Transportation announced a statement on March 5 (local time) seeking the penalty against Toyota after it failed to report the pedal defect in a timely manner. The Department of Transportation said Toyota knew of the problem last September but did not begin its recall until late January, thereby constituting intentional concealment.

Toyota has recalled eight million vehicles worldwide, including a total of six million in the U.S., because of acceleration problems.

Toyota's recall crisis has only recently started to diffuse throughout South Korea.

Toyota Korea will recall domestically sold 12,984 vehicles of three models, namely the Lexus ES350, Camry and Camry Hybrid, according to the Ministry of Land, Transport and Maritime Affairs on Tuesday.

11,232 Lexus ES350s manufactured between November 2005 and January this year, coupled with 1,549 Camrys and 203 Camry Hybrids produced between February last year and late January this year, will be recalled in South Korea. They have belatedly been found with possible problems related to floor mats and accelerators, which caused Toyota's first recall in the U.S. last year.

Hisao Nakabayashi, CEO of Toyota Korea, held a press conference on Tuesday regarding the recall and apologized for causing inconvenience and worries to South Korean customers.

[Written by Eun-jung Kim - Yoojung Lee / edited by Soyoung Chung]

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]