The U.S. government announced a 1.2 billion U.S. dollar settlement with Toyota Motor on Wednesday, the largest ever penalty for a carmaker. It concludes a four-year criminal investigation into the Japanese carmaker's safety problems.

"When car owners get behind the wheel, they have the right to expect that their vehicle is safe. If part of the automobile turns out to have safety issues, the car company has a duty, upfront, to tell customers about them, to fix them quickly, and to immediately tell the truth about the problem as well as the scope of that problem. Toyota violated this basic compact," said U.S. Attorney General Eric Holder.

The U.S. also alleged Toyota issued misleading statements about safety issues of its vehicles. Toyota admitted that it had misled consumers.

Even after a car crash in San Diego that killed a family of four, Toyota only conducted a limited safety recall of certain models. According to the Justice Department, the company knew at the time that other models might have the same acceleration problem. It also concealed a separate acceleration problem related to a faulty pedal.

Analysts say U.S. investigators may also fine General Motors for similar issues for about 35 million dollars.

Toyota CEO responded Thursday that recalls are good for all in long term.