The Obama administration expected Toyota to agree to pay a record $16.4 million fine over US government allegations the company knowingly delayed a massive accelerator pedal recall in January, a source familiar with the matter said.

Toyota is "accepting responsibility for hiding this safety defect" from the National Highway Traffic Safety Administration "in violation of the law," a senior Transportation Department official told Reuters.

The decision to pay the fine does not release Toyota from potential liability in legal cases related to recalls in 2009 and this year over unintended acceleration in Toyota and Lexus vehicles, the source said. – Reuters