In recent days, news of Toyota’s settlement for a reported $3.4 billion, or thereabouts, has made headlines. Owners of certain vehicle models claimed that they were insufficiently protected from rust and corrosion, and Toyota will now be digging deep into its pockets to settle the claims.
Toyota to settle U.S. truck rust lawsuit for up to $3.4 billion https://t.co/7CUehlXmKv pic.twitter.com/y3NXD8KU5Q
— Reuters Top News (@Reuters) November 13, 2016
According to Sara Randazzo of the Wall Street Journal , the Toyota settlement covers 1.5 million compact and full-size trucks (also known as the Tacoma and Tundra models, respectively) as well as the Sequoia sport-utility vehicle. All of the vehicles covered in the agreement were made in the year 2010 or before.
Toyota’s settlement includes Tacomas made from 2005-10, Tundras made from 2007-08, and Sequoias made from 2005-08. The Wall Street Journal also reports that this is an obvious and clear setback for the Japanese automaker.
“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.”
As reported by Keith Laing of the Detroit News, Toyota’s settlement was approved by a U.S. District Judge in Los Angeles, California, this past Wednesday . As also reported by the Detroit News, Toyota’s settlement does not include an admission of wrongdoing by the company.
“The settlement agreement states that the deal is not ‘an admission or concession of any liability or wrongdoing whatsoever’ on behalf of Toyota.”
Toyota further seemed to reassure customers that it cares deeply about customer satisfaction, and it is dedicated to maintaining a high level of excellence in its vehicles.
“Toyota said in a statement ‘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’s settlement also means that the company will have other expenses , as Reuters reports.
“Toyota also agreed to pay $9.75 million in attorneys’ fees, $150,000 in costs and expenses, and $2,500 each to the named eight class representatives as well as the cost of advertising the settlement.”
For a little bit more background, Laing’s article in the Detroit News reports that the lawsuit began with a plaintiff in Arkansas, who was an owner of one of the Tacomas that was affected. The lawsuit was later changed to also include Tundra and Sequoia owners in four other states, per the Detroit News. According to Reuters , court documents showed that the problem was serious enough to put the “structural integrity” of the vehicles at risk.
Per the agreement, owners of the vehicles in question will now have the opportunity to have Toyota inspect their frames for 12 years from the day they were originally leased or sold. According to Reuters , if the frames of the affected vehicles do indeed need to be replaced, it will come at the company’s expense. Moreover, if owners have already paid for a frame replacement, they will be reimbursed.
Having rust on a vehicle is certainly not a fun thing to deal with, and it is worth noting that the news of Toyota’s settlement also comes as winter is approaching. Rust can be a big problem for vehicle owners who live in the “salt belt,” which are states where salt is used to combat snow and ice on the roads. DMV.org has a few helpful tips on how to protect vehicles from rusting due to road salt. Among them are planning ahead by thoroughly cleaning and waxing your automobile during the fall months.
The smooth running 2017 @Toyota Tacoma TRD is comfy on and off road https://t.co/IO6UcbTJ5m pic.twitter.com/DUi3bI2NcT
— Autoblog (@therealautoblog) November 11, 2016
Though still behind trucks made by American companies, such as the Ford F-150, Chevrolet Silverado, and Dodge Ram, the Toyota Tacoma, and Tundra have become quite popular in the United States. According to GoodCarBadCar.net , the Tacoma and Tundra were recently ranked as the fifth and sixth best-selling pickup trucks in the country.
The news of Toyota’s settlement is clearly a big blow for the company, but it still wouldn’t be shocking to see sales of the Tacoma and Tundra remain steady.
[Featured Image by David McNew/Getty Images]
