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Toyota agrees to pay record fine

TOYOTA has agreed to pay a record $16.4m (£10.7m) fine over US government allegations the company knowingly delayed a massive accelerator pedal recall in January.

The fine is the largest-ever penalty paid by a car maker to the US government.

A recall of 2.3m vehicles with sticking accelerator pedals, prompted the penalty.

The government says Toyota knew about the problem in late September and failed to report the defect within five business days, as
required by law.

Toyota said in a statement that it agreed to the penalty "to avoid a protracted dispute and possible litigation."