Toyota to allot $1.1 billion to settle unintended acceleration suits

Article by Anita Panait, on December 27, 2012

Toyota Motor Corp. will be allotting around $1.1 billion to settle various lawsuits and other claims in the United States -- all prompted by reports of unintended acceleration that the Japanese carmaker was faced with in 2009 and 2010. Toyota said in a statement that it has agreed to fit new braking override systems in certain vehicles as well as reimburse owners who suffered economic losses due to the said problems.

The settlement will cover up to 16 million vehicles, which will be provided with three- to 10-year warranties for components related to unintended acceleration, according to a statement released by the plaintiffs' lawyers.

Around 3.25 million vehicles would be eligible for new brake-override devices, according to the lawyers. The Wall Street Journal reported that Toyota did not admit any fault for the acceleration problems when settling a key piece of class-action litigation pending in U.S. District Court in California.

The settlements are expected to end the consumer fallout from the carmaker’s unintended acceleration cases, which plagued Toyota while it struggled with the US recession.

Jesse Toprak, a senior analyst with TrueCar.com, told Automotive News that Toyota wants to put its unintended acceleration recalls behind “once and for all.” He remarked that while the settlement could be very costly, it will allow Toyota to remove most of the “lingering financial uncertainty."

According to the plaintiffs' lawyers, the settlement could be valued at $1.2 billion to $1.4 billion, making it one the largest ever in the auto industry. U.S. District Judge James Selna is expected to review the settlement on Friday. According to Bloomberg, lawsuits claiming personal injuries and deaths caused by such incidents remain pending, with the first federal trial set for February 2013 in Santa Ana.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
As if seeing the future more than a decade from now, one of the top scientists in the world of robotics and automations is predicting that children born today won’t...
by - January 19, 2017
Ford has just recently unveiled the 2018 Ford Mustang, and as it turned out, the carmaker gave its beloved pony car a facelift. There have been mixed reactions about the...
by - January 19, 2017
The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries