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delcecchi

Toyota Settles...

7 posts in this topic

Toyota in $3.4 Billion Settlement Over Corrosion in Some Trucks and SUVs

Suits claim certain of Japanese auto maker’s vehicles lacked proper rust protection

 

From WSJ  (how do they put a new frame in a pickup?)

By

Sara Randazzo

Updated Nov. 13, 2016 7:25 p.m. ET

 

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 broader group of auto makers facing plateauing retail sales in the profitable U.S. market.

The deal, filed in U.S. District Court in Los Angeles this week, settles litigation in two states over problems with Toyota Tacoma trucks from model years 2005 to 2010, Tundras from 2007 to 2008 and Sequoias from 2005 to 2008.

 

Around 1.5 million vehicles in the U.S. are covered by the settlement, court filings show.

The agreement represents a significant settlement for the auto industry and follows several costly agreements auto makers have forged in recent years to address quality, safety or emissions issues in vehicles.

General Motors Co. recalled millions of vehicles in 2014 and spent billions of dollars to address ignition-switch problems linked to 124 deaths; Volkswagen AG forged a $14.7 billion deal more recently to settle with U.S. drivers of diesel-powered cars affected by an emissions-cheating scheme.

Several auto makers, including Toyota, continue to work with Takata Corp. to repair tens of millions of air bags in the largest automotive safety campaign in history.

“We want our customers to have a great ownership experience, so we are pleased to resolve this litigation in a way that benefits them and demonstrates that we stand behind the quality and reliability of our vehicles,” Toyota said.

The settlement was reported earlier by The Detroit News.

Toyota and plaintiffs’ lawyers said the deal, which is still subject to court approval, reflects months of negotiation. As part of the agreement, Toyota doesn’t admit to any wrongdoing.

Once approved, consumers will be entitled to an inspection of their vehicles and ultimately replacement of its frame if the car is found to have the faulty rust protection. Car owners who already have replaced their frames will also be reimbursed.

Court documents peg the cost of inspection to Toyota under the accord at $90 a vehicle and to replace each frame at $15,000.

The deal also sets aside up to $9.9 million for attorneys’ fees and expenses. Toyota said it would pay between $1.75 million and $2.5 million to notify potential affected consumers by mail and through publication notices and internet campaigns.

Attorneys for consumers called the settlement “the result of hard-fought litigation” and a “complete and total success” for affected drivers. Toyota said in its own filing that while it “disputes and contests the allegations in these class actions lawsuits,” the deal “represents a reasonable and fair way to end the controversy.”

The litigation dates back to 2014, when consumers filed a lawsuit in Arkansas that was later combined with litigation in California.

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What about **Dot's role involving massive corrosion?

 

How did GM avoid a costly recall over brake lines that struggle to make it more than 10 years?

 

If cars are now dissolving at record speed, how is the environment being affected?

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That has been a know issue for quite some time. Toyota has already been replacing these for quite a while.

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1 hour ago, Jeremy airjer W said:

That has been a know issue for quite some time. Toyota has already been replacing these for quite a while.

 

Could be, but the lawsuit was just settled.  Not even approved yet.   Maybe it was one of those "secret warranty" things, where some folks got the gold mine and others got the shaft.   There is certainly precedent for that in the auto industry. 

Edited by delcecchi

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15 hours ago, Jeremy airjer W said:

That has been a know issue for quite some time. Toyota has already been replacing these for quite a while.

 

I believe the one your thinking of was a voluntary recall done by Toyota to fix similar issues with 1995 to 2000 Tacomas back in 2008. I believe it was extended out a few years to cover some model Tacomas and early Tundra models.

 

This is the first I have heard of it lawsuit with newer year model Tundras. I may have to see what they say about my 2008. 

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5 hours ago, rundrave said:

 

I believe the one your thinking of was a voluntary recall done by Toyota to fix similar issues with 1995 to 2000 Tacomas back in 2008. I believe it was extended out a few years to cover some model Tacomas and early Tundra models.

 

This is the first I have heard of it lawsuit with newer year model Tundras. I may have to see what they say about my 2008. 

Sounds like you will be getting an inspection, anyway.   I hope it goes well. 

 

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Mainly the Sequoias and Tacoma. Your right, it was some sort of extended warranty recall situation.

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