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.
Filed under: Government/Legal , Safety , Toyota , Earnings/Financials According to those all-too-nebulous “people familiar with the matter,” Toyota is close to a settlement with the US federal government to end a criminal probe over its long-running unintended acceleration fiasco. Though Toyota has never admitted guilt, the deal could reportedly crest a billion dollars and would likely include a criminal deferred prosecution agreement, and while we’re not legal experts, The Wall Street Journal explains that such a deal would “[force Toyota] to accept responsibility while avoiding the potentially crippling consequences of federal criminal convictions.” The report from WSJ also suggests that Toyota is facing charges that it “made false or incomplete disclosures” to various government agencies regarding possible defects to its cars. Such charges may include mail and wire fraud violations. Toyota has already paid out fines totaling $66.2 million to the National Highway Traffic Safety Administration because it failed to report safety defects in a timely manner. This deal with the federal government is not related to the billion-dollar class-action settlement reached with Toyota owners over falling vehicle values, and it’s also different from the roughly 400 lawsuits still in courts alleging personal injury of wrongful death due to cases of unintended acceleration. In other words, don’t expect to hear the end of such courtroom verdicts and settlements anytime soon… Toyota nearing $1B settlement of unintended acceleration criminal probe originally appeared on Autoblog on Sun, 09 Feb 2014 11:02:00 EST. Please see our terms for use of feeds . Permalink
Filed under: Government/Legal , Safety , Lexus , Toyota Toyota’s sales seem to have rebounded from the unintended acceleration issues from 2009 and 2010, but the automaker is far from done dealing with this situation. Following a settlement worth up to $1.4 billion for economic loss to affected vehicle owners, Toyota has settled rather than going to trial in a wrongful death lawsuit stemming from an accident in Utah in 2010 that left two passengers dead. This isn’t the first case in which Toyota has settled, but it was the first among a consolidated group of cases being held in Santa Ana, CA. According to The Detroit News , this case was scheduled to take place next month, and it was for a November 2010 incident in which Paul Van Alfen and Charlene James Lloyd were killed in a Camry when, based on findings by the Utah Highway Patrol, the accelerator got stuck causing the car to speed out of control and hit a wall; the terms of the settlement were not announced. The article says that while Toyota will settle on some cases, it doesn’t plan on settling on all of them as it still wants to be able to “defend [its] product at trial.” This will probably be the case in suits claiming that software for the drive-by-wire accelerator was the cause of an accident in a Toyota or Lexus vehicle. The question of whether or not the electronic accelerator played any role in this problem has been a hot-button topic since the beginning. Toyota has issued recalls in the past to attempt to prevent unintended acceleration caused by trapped floor mats and faulty accelerator pedals, but it also says driver error was to blame in some instances. Toyota settles first wrongful death suit related to unintended acceleration originally appeared on Autoblog on Mon, 21 Jan 2013 09:57:00 EST. Please see our terms for use of feeds . Permalink
Filed under: Government/Legal , Safety , Toyota , Earnings/Financials The Toyota settlement recently submitted to US District Judge James Selna for approval will cost the company anywhere from $1 billion to $1.4 billion. All to settle the class-action suit brought against it for economic losses stemming from claims of unintended acceleration . This suit only addresses the perceived loss-of-value that Toyota owners and lessees feel they have suffered, alleging their cars were the victims of unintended depreciation even if they did not directly suffer from the alleged cases of unintended/sudden acceleration. This is a separate case than the wrongful death suits brought about by the unintended acceleration brouhaha. When the settlement was announced, this was the overview of its payouts: Toyota will install brake override systems in all 3.25 million vehicles subjected to the floor mat entrapment recall . Another fund of $250 million will compensate current owners whose vehicles are not eligible for the free brake override system. A fund of $250 million will compensate former Toyota owners who sold their cars from September 1, 2009 through December 31, 2010 for lost value. Education grants valued at $30 million will be made to independent academic institutions to further study auto safety and enhance driver education. All 16 million current Toyota owners will be eligible for a customer care plan that warrants certain parts allegedly related to unintended acceleration for three to 10 years. Car and Driver attempts to break down where all that largesse is going, and who’s going to get large off of it.
Toyota proposes economic loss settlement worth up to $1.4 billion over unintended acceleration claims
Filed under: Government/Legal , Recalls , Safety , Toyota , Earnings/Financials Toyota announced a proposal today worth over a billion dollars to settle civil claims of economic loss related to alleged cases of sudden unintended acceleration in its vehicles from 2009-2010. Estimates place the cost of the settlement between $1.1 billion and $1.4 billion, which would, according to lawyers for the plaintiffs, make it the largest of its type in US history. US District Judge James Selna, who is presiding over the case in California, will review Toyota’s settlement proposal as early as Friday. The details of the settlement, as given by Toyota in an official statement and obtained from a press release issued by lawyers for the plaintiffs, are as follows. Toyota will install brake override systems in all 3.25 million vehicles subjected to the floor mat entrapment recall . A fund of $250 million will compensate former Toyota owners who sold their cars from September 1, 2009 through December 31, 2010 for lost value. Another fund of $250 million will compensate current owners whose vehicles are not eligible for the free brake override system. All 16 million current Toyota owners will be eligible for a customer care plan that warrants certain parts allegedly related to unintended acceleration for three to 10 years. Education grants valued at $30 million will be made to independent academic institutions to further study auto safety and enhance driver education. As mentioned above, the settlement relates only to claims of economic loss, and thus does not cover wrongful death claims, the first trail for which is slated to begin in February 2013.