Toyota Announces $1.1 Billion Settlement
12-26-12, 01:44 PM
#1
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Toyota Announces $1.1 Billion Settlement
Interesting development regarding Economic Loss to customers, includes installation of a brake override system or cash payment as applicable.
December 26, 2012
Toyota Announces Settlement of Economic Loss Litigation That Provides Value to Customers
NEW YORK, Dec 26, 2012 –Toyota Motor North America today announced an agreement to resolve economic loss litigation in the U.S. related to previous recalls by committing to actions that deliver value to its customers.
“This agreement marks a significant step forward for our company, one that will enable us to put more of our energy, time and resources into Toyota’s central focus: making the best vehicles we can for our customers and doing everything we can to meet their needs,” said Christopher P. Reynolds, group vice president and general counsel, Toyota Motor Sales, U.S.A, and chief legal officer, Toyota Motor North America. “In keeping with our core principles, we have structured this agreement in ways that work to put our customers first and demonstrate that they can count on Toyota to stand behind our vehicles.”
Reynolds continued: “This was a difficult decision – especially since reliable scientific evidence and multiple independent evaluations have confirmed the safety of Toyota’s electronic throttle control systems. However, we concluded that turning the page on this legacy legal issue through the positive steps we are taking is in the best interests of the company, our employees, our dealers and, most of all, our customers.”
If this economic loss settlement is approved by the judge supervising multidistrict litigation (MDL) pending in the U.S. District Court for the Central District of California, Toyota will launch a new customer-support program that will provide prospective supplemental coverage for certain vehicle components and will retrofit additional non-hybrid vehicle models subject to the floor mat recall with a free brake override system (BOS) to provide an added measure of confidence.
Further, assuming any appeals are resolved in favor of the settlement, Toyota will offer cash payments to eligible customers who sold or turned-in their leased vehicles in a period during 2009-2010, as well as other specified persons, and to eligible current owners and lessees who will not be offered BOS. The proposed settlement would also establish additional driver education programs and fund new research into advanced safety technologies.
Toyota also announced that it will take a one-time, $1.1 billion pre-tax charge against earnings to cover the estimated costs of the economic loss settlement and possible resolution costs of civil litigation brought in California by the District Attorney of Orange County and an investigation by a multi-state group of Attorneys General stemming from previous recalls.
For more information on the economic loss settlement, consumers are asked to visit www.toyotaelsettlement.com or call 877-283-0507.
Toyota Announces Settlement of Economic Loss Litigation That Provides Value to Customers
NEW YORK, Dec 26, 2012 –Toyota Motor North America today announced an agreement to resolve economic loss litigation in the U.S. related to previous recalls by committing to actions that deliver value to its customers.
“This agreement marks a significant step forward for our company, one that will enable us to put more of our energy, time and resources into Toyota’s central focus: making the best vehicles we can for our customers and doing everything we can to meet their needs,” said Christopher P. Reynolds, group vice president and general counsel, Toyota Motor Sales, U.S.A, and chief legal officer, Toyota Motor North America. “In keeping with our core principles, we have structured this agreement in ways that work to put our customers first and demonstrate that they can count on Toyota to stand behind our vehicles.”
Reynolds continued: “This was a difficult decision – especially since reliable scientific evidence and multiple independent evaluations have confirmed the safety of Toyota’s electronic throttle control systems. However, we concluded that turning the page on this legacy legal issue through the positive steps we are taking is in the best interests of the company, our employees, our dealers and, most of all, our customers.”
If this economic loss settlement is approved by the judge supervising multidistrict litigation (MDL) pending in the U.S. District Court for the Central District of California, Toyota will launch a new customer-support program that will provide prospective supplemental coverage for certain vehicle components and will retrofit additional non-hybrid vehicle models subject to the floor mat recall with a free brake override system (BOS) to provide an added measure of confidence.
Further, assuming any appeals are resolved in favor of the settlement, Toyota will offer cash payments to eligible customers who sold or turned-in their leased vehicles in a period during 2009-2010, as well as other specified persons, and to eligible current owners and lessees who will not be offered BOS. The proposed settlement would also establish additional driver education programs and fund new research into advanced safety technologies.
Toyota also announced that it will take a one-time, $1.1 billion pre-tax charge against earnings to cover the estimated costs of the economic loss settlement and possible resolution costs of civil litigation brought in California by the District Attorney of Orange County and an investigation by a multi-state group of Attorneys General stemming from previous recalls.
For more information on the economic loss settlement, consumers are asked to visit www.toyotaelsettlement.com or call 877-283-0507.
12-26-12, 10:46 PM
#3
Is all this stemming from the "unintended acceleration" issue that was found to be predominantly user error?
I think our Gov't is trying to strong arm and hurt Toyota. It's such a big competitor to the big 3 that they're willing to 'help' undermine them.
I think our Gov't is trying to strong arm and hurt Toyota. It's such a big competitor to the big 3 that they're willing to 'help' undermine them.
12-27-12, 10:25 AM
#5
There is no government involved on this thing. It's a company not run by a government voluntarily paying $1.3 billion or whatever it eventually ends up being to settle a legal case with private citizens while not acknowledging any wrongdoing on their part. There was no strong arm or the government "help" anywhere in this process.
12-27-12, 11:22 AM
#7
There is no government involved on this thing. It's a company not run by a government voluntarily paying $1.3 billion or whatever it eventually ends up being to settle a legal case with private citizens while not acknowledging any wrongdoing on their part. There was no strong arm or the government "help" anywhere in this process.
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12-27-12, 11:39 AM
#8
Well, first of all, whether media blew it out of proportion or not is your own opinion, not an indisputable fact. #2, "media" is not a government entity. Unless you are talking about fox news during republican administration. #3 Toyota didn't have to settle the case even if "the media" blew it out of proportion and gone to the trial to argue the merit of its case that this whole thing was/is a witch hunt.
Where is the government involvement you spoke of???
Where is the government involvement you spoke of???
12-27-12, 11:44 AM
#9
....But that figure didn't include the new settlement or other government fines and related costs.
Read more: http://www.autoweek.com/article/2012...#ixzz2GHbaWT4G
Read more: http://www.autoweek.com/article/2012...#ixzz2GHbaWT4G
. Why would they have to pay fines if it was found that there were NO problems to begin with? Hell even a government study found the unintended acceleration was user error.
I really am curious why Toyota is paying out this settlement.
12-27-12, 12:03 PM
#11
That fine from the government has no bearing on the merit of the class action case where Toyota ended up settling for $1.1 billion. The Occam's razor way to explaining this whole thing would be Toyota was guilty as charged and thought the easy way out was to pay up the government fine and the $1.1 billion class action settlement NOT that it's the government and/or media are on the hook against Toyota or for big 3 or whatever other conspiracy you are gonna come up with.
12-27-12, 12:13 PM
#12
Well that's sad. Because I doubt it will. More people will see it easy to pull another BS stunt and blame them once again, in the hopes they can get another class action suit. That is what's wrong with this country, people are TOO sue happy even when its their own fault.
The highlighted part knocks out ALL logic. It was found they weren't guilty of SQUAT. Media gave light to people who held down the gas pedal instead of the brake pedal, who didn't try to shift to neutral, and blamed it ALL on Toyota. What was Toyota guilty of? Selling cars to people who had no business being on the road....
The Occam's razor way to explaining this whole thing would be Toyota was guilty as charged and thought the easy way out was to pay up the government fine and the $1.1 billion class action settlement NOT that it's the government and/or media are on the hook against Toyota or for big 3 or whatever other conspiracy you are gonna come up with.
12-27-12, 12:26 PM
#13
12-27-12, 02:02 PM
#15