Car-makers unlikely to cut prices despite threats of imports

KARACHI: The automobile assemblers are likely to stay resilient against Prime Minister Yousuf Raza Gilani’s recent warning that car imports will be liberalised if the local companies do not lower their prices, a brokerage house report said on Wednesday.

The automakers are more likely to throw the ball in the government’s court and demand incentives in the upcoming budget such as cut in import duty on complete knock down kits (CKDs) to lower car prices, a report from the KASB Research said.

Toyota faces record $16.4m fine

Largest ever in US against an automaker

WASHINGTON/DETROIT: Toyota Motor Corp faces a proposed $16.4 million fine from US regulators who said the automaker knowingly delayed a massive recall for defective accelerator pedals.

The civil penalty, the largest that the US Department of Transportation has ever sought, is the first official finding that the world’s largest automaker violated US safety regulations. Toyota can appeal the penalty.

“We now have proof that Toyota failed to live up to its legal obligations,” US Transportation Secretary Ray LaHood said in a statement. “Worse yet, they knowingly hid a dangerous defect for months from US officials and did not take action to protect millions of drivers and their families.”