$7.9 Million in Fines Paid by Toyota
This page finalized September 19, 2006
TOYOTA CASE SETTLES FOR $7.9 MILLION
|The California Environmental Protection Agency’s Air Resources
Board (ARB) announced today that Toyota has agreed to a $7.9 million settlement stemming from a 1998 recall order
for potential defects in evaporative emission system monitors. Toyota agreed to fund a package valued at $7.9 million.
A $1.2 million contribution will go to the California Air Pollution Control Fund (APCF), and $4.3 million will
go toward supplemental environmental projects to be agreed upon jointly between ARB and Toyota. Also, Toyota will
extend the warranty coverage for defects that may occur in the evaporative emission control system of the affected
vehicles from 3 years or 50,000 miles, to 14 years or 150,000 miles. And, Toyota has agreed to introduce some of
their new models earlier than required to comply with ARB’s near-zero evaporative emissions standards. The extended
warranty and the early compliance efforts are together valued at $2.4 million.
ARB tests indicated that during the years 1996-1998, Toyota sold vehicles in California with diagnostic systems that were unable to routinely detect fuel system vapor leaks. The defects were found during tests by the ARB who subsequently ordered a recall of approximately 330,000 cars. Toyota challenged the order claiming that their leak-check systems met California requirements. Both parties agreed to allow the case to be heard by an administrative law judge. The judge concluded that ARB testing did not conclusively demonstrate Toyota vehicles were out of compliance with California regulations when reviewing the strict regulatory language. The judge did agree that Toyota failed to fully disclose required information during certification approval that would have alerted ARB staff to the problem before Toyota received approval.