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

Recommended

The first time Porsche revealed the Panamera Sport Turismo to the public was during the 2017 Geneva Motor Show earlier this year. And now it has already entered production, and...
by - July 27, 2017
Autocar has got some juicy rumours for us regarding a new McLaren hypercar. The British publication has inside sources claiming that a new model will be added to the Ultimate...
by - July 27, 2017
Ferrari has recently launched the New Power15 extended warranty program. The company developed this program in response to the notion that supercars are very expensive to maintain. Truth be told,...
by - July 27, 2017
The UK it seems is about to take the same road as its neighbouring country France by banning sales of petrol and diesel vehicles beginning 2040. As reported by The...
by - July 27, 2017
What has BMW been up to lately? The company recently announced that they are currently focusing on electrification, and so far, their new architecture will enable “electrification of every model...
by - July 26, 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