Published on December 28th, 2012 | by Daniel Sherman Fernandez0
Toyota To Settle Some USD1.1Billion in North America
Toyota will paying out around USD1.1 billion to settle various lawsuits and other claims in North America for unintentional/unintended acceleration of certain models which they faced between 2009 and 2010. Toyota in an official statement 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 3 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 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. 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.