Toyota will pay 1.4 billion dollars for its lawsuits

Posted on Friday, 28 December 2012 , 15:12:31 byEmil

Filed under toyotajapaneseasianlawsuitsrecallToyotaAsianJapaneseRecall

Toyota will pay 1.4 billion dollars for its lawsuits


Toyota had a lot of problems in the last 10 years. To be more precise, the US National Highway Traffic Safety Administration has received almost 3.100 complaints on sudden acceleration issues in the Japanese models. 93 deaths were signaled as a result, but the company only managed to related 5 of them with the problem mentioned above. After wrongly installing a floor mat on a loaner Lexus ES, the vehicle crashed and the driver and three passengers lost their lives. The Japanese manufacturer was forced to recall 7.1-million vehicles in North America and another 5.3 million in the rest of the world. Toyota also had to pay $70 million worth of fines to the NHTSA because it failed to recall the affected vehicles on time. This is not all. After verifying some documents, the Congress found out that the company knew about the problem, but did not do anything in order to save money. Two days ago, the carmaker agreed to settle the resulting lawsuits and apparently the settlement is worth between $1.2-1.4 billion. This is actually the largest-ever in the automotive sector.



The Japanese manufacturer said the money will cover the possible resolution costs of civil litigation and the estimated costs of the economic loss settlement. Toyota will pay owners and former owners for its cars, but will also install a brake-override system. This cuts the throttle when it detects simultaneous signals to accelerate and brake. Around 2.7 million cars will receive it and will also obtain an extended coverage up to 150.000 miles on around 16.3 million vehicles. This is an important step for Toyota, which will use a lot of the energy of their workers and a lot of resources. This story is getting close to an end, finally. This is all for now, we will return with more details as soon as the company makes them available.