WASHINGTON (AP) — Already flooded with hundreds of private lawsuits, Toyota now faces a dilemma stemming from safety problems on several popular models: whether to accept a record $16.4 million fine that could be cast as an admission of wrongdoing, or fight the government at the cost of more bad publicity.

The Japanese automaker was weighing its options after the Transportation Department charged that Toyota had hidden a "dangerous defect" and had failed to quickly alert regulators to the safety problems in such models as the best-selling Camry and Corolla. The company has an April 19 deadline to accept or contest the penalty.

The proposed fine is the most the government could levy, but further penalties are possible under continuing federal investigations.

Toyota Motor Corp. said yesterday it would continue to offer most of its heavy sales incentives in April after the discounts helped drive up sales more than 40 percent last month. The incentives include cheap leases, zero-percent financing and a two-year free maintenance programme.

Toyota has recalled more than six million vehicles in the US, and more than eight million worldwide, because of acceleration problems in multiple models and braking issues in the Prius hybrid.

In announcing the proposed fine, Transportation Secretary Ray LaHood said documents obtained from the automaker show that Toyota knew of the problem with the sticking gas pedals in late September but did not issue a recall until late January. The sticking pedals involved 2.3 million vehicles.

"We now have proof that Toyota failed to live up to its legal obligations," 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."