Update: LaHood is now saying, according to CNBC, that if you have a Toyota, you should stop driving it NOW!
The stock is off 5% in early trading.
Original post: Toyota Motor Corp.’s accelerator pedal problem is getting stickier by the day.
On Tuesday, U.S. regulators accused the company of not reacting quick enough to fix defective gas pedals and threatened civil penalties, WSJ.com reports.
Secretary of Transportation Ray LaHood said in a statement, ‘We’re not finished with Toyota and are continuing to review possible defects and monitor the implementation of the recalls.”
Another DOT official stated that the agency is considering a civil penalty against Toyota. If manufacturers don’t issue a timely recall of defective vehicles, they can face a penalty of up to $16.4 million.
One analyst at Mizuno Credit Advisory said that if the new Prius model turns out to have a serious problem, it will have a “strong impact on Toyota’s performance,” as hybrid cars, are “almost the only cars selling well in Japan and the US.”
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