A major automaker is paying a major penalty for a faulty part.

Toyota will pay the U.S. government a record $16.4 million fine after waiting too long to tell authorities about a dangerous pedal defect.  

The sticking accelerator led to a recall of 2.3 million vehicles from the Japanese manufacturer.

Transportation Secretary Ray LaHood said that by failing to report safety problems, Toyota put consumers at risk.

It’s the largest-ever fine paid by an automaker to the United States government. 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 and the National Highway Traffic Safety Administration reached a settlement.

“We agreed to this settlement in order to avoid a protracted dispute and possible litigation,” Toyota said in a statement.

However, the company also argued that it did not violate the law.

“We regret that NHTSA tentatively concluded that they should seek a civil penalty. Toyota denies NHTSA's allegation that it violated the Safety Act or its implementing regulations.

"We believe we made a good faith effort to investigate this condition and develop an appropriate counter-measure. We have acknowledged that we could have done a better job of sharing relevant information within our global operations and outside the company, but we did not try to hide a defect to avoid dealing with a safety problem.”