Toyota denied violating US regulations and said it was paying the fine, the maximum allowed by US law and the largest the regulator has ever sought, "to avoid a protracted dispute and possible litigation."
The world's biggest automaker also recalled the Lexus GX 460 after its engineers replicated a test by influential magazine Consumer Reports, which called the car a "safety risk" when the car lost control during a sharp turn. This recall came less than a week after the magazine report.
Toyota said it would recall nearly 10,000 Lexus GX 460 vehicles sold in the United States and Canada to fix software in the electronic stability control system. The GX 460 is new for the 2010 model year and has only been on sale for a few months.
Toyota's shares fell 31 cents to US$79.06 on the New York Stock Exchange late Monday afternoon.
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