If not for statutory cap, Toyota would face civil penalties of $13.8 billion

If not for statutory limits, Toyota would be subject to civil penalties of $13.8 billion for waiting to notify federal regulators of a sticky pedal defect, the National Highway Traffic Safety Administration told the automaker in a letter.

The regulators announced this week that they are seeking to fine the automaker only a small fraction of that amount, or $16.4 million, the highest possible penalty under the law.

"The gravity of Toyota's apparent violations is severe and potentially life-threatening," NHTSA chief counsel O. Kevin Vincent wrote to Toyota in a letter dated April 5. "The result of these decisions by Toyota was to expose millions of American drivers, passengers and pedestrians to the dangers of driving with a defective accelerator pedal."

Under the law, the penalty for failing to notify regulators of a safety defect is $6,000 a car. Toyota had to recall 2.3 million for the sticky pedal.

If not for the cap, that could have subjected the automaker to the $13.8 billion in fines. Among the reforms being proposed as a result of the Toyota controversy is a proposal to lift that limit.

The government continues to investigate how the automaker has handled years of complaints that its cars sometimes accelerate out of control and, if other violations are found, could seek to further penalize the company.

But the larger financial burdens for the company will probably arise as the courts weigh claims from people who say they were injured as a result of defects that have led the company to recall millions of cars.

On Friday, a panel of judges selected a federal court in Southern California as the venue in which to consolidate dozens of lawsuits against the company.

More than 130 lawsuits are filed by Toyota owners who say their vehicles dropped in value after the recalls. At least 100 other lawsuits seek damages from Toyota for injuries or deaths caused by sudden acceleration.