Toyota in $3.4 Billion Settlement Over Corrosion in Some Trucks and SUVs
Toyota Motor Corp. has agreed to pay up to about $3.4 billion to settle claims that certain of its trucks and sport-utility vehicles lacked proper rust protection, leading to premature corrosion of vehicle frames.The agreement is a substantial financial setback at a time when the Japanese auto giant's record-breaking profit streak has slowed in recent quarters as a strong yen dents its performance.The company also is part of a...
Toyota to settle truck rust lawsuit for up to $3.4 billion
A row of Tundra pickups at Toyota of Orlando in Orlando, Fla., on Jan. 5, 2009.Photo credit: BLOOMBERG FILE PHOTOA row of Tundra pickups at Toyota of Orlando in Orlando, Fla., on Jan. 5, 2009.Photo credit: BLOOMBERG FILE PHOTOHave an opinion about this story?
Toyota Agrees to $3.4 Billion Settlement in Corrosion Case
Toyota Motors has agreed to a settlement of up to $3.4 billion for a federal class-action lawsuit brought by American owners of pickup trucks and sport utility vehicles whose frames could rust through, plaintiffs' lawyers said in court papers.The proposed settlement covers about 1.5 million Tacoma compact pickup trucks, Tundra full-size pickup trucks and Sequoia S.U.V.s suspected of receiving inadequate rust protection that could lead to corrosion serious enough to jeopardize their structural integrity, according to the court papers.In court papers supporting the settlement, lawyers for the plaintiffs estimated the value of frame replacements at about $3.375 billion based on a cost of about $15,000 per vehicle.
Toyota will spend up to $3.4 billion for rusty trucks
Enlarge Image Photo by ToyotaOnce rust starts eating certain parts of the car, it can greatly affect performance and safety.Some of Toyota's trucks have a serious rust problem, and the automaker is settling with owners to the tune of billions of dollars.Toyota agreed to settle a federal class-action lawsuit regarding truck frame rust, Reuters reports.
Toyota to pay $3.4 billion to settle premature rusting lawsuits
LOS ANGELES, Nov. 12 (UPI) -- Japanese automaker Toyota agreed to a $3.4 billion settlement after metal body frames on its pickups and SUVs were found to lack sufficient rust protection, causing them to prematurely corrode.According to court filings, the settlement, which won preliminary approval from a federal judge in Los Angeles earlier this week, covers about 1.5 million vehicles in the United States.Toyota owners in two states filed suit over problems with their vehicles, which include Toyota Tacoma trucks from model years 2005 to 2010, Tundras from 2007 to 2008 and Sequoias from 2005 to 2008.