Toyota reaches $1.2B unintended acceleration settlement in criminal probe

Toyota reaches $1.2B unintended acceleration settlement in criminal probe

March 20, 2014 by · Leave a Comment 

Filed under: Government/Legal , Recalls , Safety , Toyota , Earnings/Financials UPDATE: Just like that, Toyota has released an official statement confirming its $1.2-billion dollar settlement with the US Attorney’s Office. Our story has been updated to reflect this development and the automaker’s official statement has been added below . Toyota has reached a settlement over the criminal probe into its unintended acceleration problems, and the outcome is more expensive than first expected. The Japanese automaker has agreed to pay $1.2 billion to close the investigation among other settlement terms. The criminal inquiry focused on whether the company kept information from regulators and how it handled drivers’ complaints about the problems, according to the sources. Between 2009 and 2010, Toyota ended up recalling over 10 million vehicles worldwide over sudden acceleration fears. Fixes include modifying floor mats, gas pedals, and installing brake override software on affected models. In addition, Toyota made the latter standard on all of its new vehicles. The first rumblings of a settlement broke last month when “people familiar with the matter” revealed a possible billion-dollar agreement . That rumor suggested that the deal would also include criminal deferred prosecution arrangement that would force Toyota to accept responsibility but let it avoid federal criminal convictions.

DoJ fines Japanese parts firms $740M in massive automotive price-fixing scandal

DoJ fines Japanese parts firms $740M in massive automotive price-fixing scandal

September 28, 2013 by · Leave a Comment 

Filed under: Government/Legal , Japan , Plants/Manufacturing , Chrysler , Ford , GM , Toyota Nine Japanese suppliers have pleaded guilty in US court over charges of price fixing in the automotive parts industry, resulting in the Department of Justice doling out a total of $740 million of fines, according to a report from Bloomberg . The scandal, which has resulted in General Motors , Ford , Toyota and Chrysler spending up to $5 billion on inflated parts and driving up prices on 25 million vehicles has sent the DoJ hustling into investigations. “The conduct this investigation uncovered involved more than a dozen separate conspiracies aimed at the U.S. economy,” Attorney General Eric Holder (pictured above) said during yesterday’s press conference. As the investigation stands, the DoJ has issued $1.6 billion in fines against 20 companies and 21 individual executives, with 17 of the execs headed to prison. Deputy Assistant Attorney General Scott Hammond said, “The breadth of the conspiracies brought to light today are as egregious as they are pervasive. They involve more than a dozen separate conspiracies operating independently but all sharing in common that they targeted US automotive manufacturers.” Big-name suppliers indicted in the investigation include Mitsubishi Electric, Mitsubishi Heavy Industries, Hitachi Automotive and Mitsuba Corporation. A list of fines and other corporations named in the investigation is available at Bloomberg . DoJ fines Japanese parts firms $740M in massive automotive price-fixing scandal originally appeared on Autoblog on Fri, 27 Sep 2013 18:31:00 EST. Please see our terms for use of feeds .

NHTSA investigating 561k Toyota Prius hybrids for possible steering shaft defect

NHTSA investigating 561k Toyota Prius hybrids for possible steering shaft defect

February 26, 2013 by · Leave a Comment 

Filed under: Hybrid , Recalls , Safety , Hatchback , Toyota The Detroit News is reporting that the National Highway Traffic Safety Administration will investigate some 561,000 Toyota Prius models for potentially defective steering shafts. The affected hybrid models are from the 2004-2009 model years. The story indicates that NHTSA is weighing whether or not to grant a defect petition, which claims that Toyota incorrectly assembled the hatchback’s steering linkage. As of this writing, there is no recall. However, a recall based on the Prius steering shaft would be the third related to steering issues for the model since 2006. Seven years ago, Toyota recalled 170K Prius models for potential cracking of the intermediate shafts, and in November of 2012, the automaker recalled 670K units to replace the steering shaft extension assembly. We’ll be monitoring NHTSA’s signals to see if this investigation turns into a full-fledged recall. For now, stay tuned. NHTSA investigating 561k Toyota Prius hybrids for possible steering shaft defect originally appeared on Autoblog on Mon, 25 Feb 2013 11:30:00 EST. Please see our terms for use of feeds .

Feds investigating Toyota Camry and RAV4 over door fires

Feds investigating Toyota Camry and RAV4 over door fires

February 11, 2012 by · Leave a Comment 

Filed under: Sedan , Government/Legal , Recalls , Safety , Crossover , Toyota According to a report from The Associated Press , the National Highway Traffic Safety Administration has opened a probe into possible driver-side door fires in 2007 Toyota Camry sedans and RAV4 crossovers. A total of 830,000 vehicles may be affected. Six fires have been reported to NHTSA, all stemming from the door-mounted power window switch. Five of the fires are said to have been minor, with one resulting in the total loss of a Camry that burnt to a crisp before firefighters were able to respond. It’s important to note that this is not (yet) a recall. NHTSA opened an investigation on Monday, February 6, and a recall could potentially be announced depending on NHTSA’s findings. Toyota has said in a statement that it is cooperating fully with the investigation. Feds investigating Toyota Camry and RAV4 over door fires originally appeared on Autoblog on Fri, 10 Feb 2012 16:31:00 EST. Please see our terms for use of feeds . Permalink

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