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Toyota Agrees to $3.4 Billion Settlement for Rust Lawsuit
Toyota Motor Corp. has agreed to pay as much as $3.4 billion to settle complaints in the U.S. that frames of its pickup trucks and SUVs could rust through and fail, The Detroit News reports.
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Toyota Motor Corp. has agreed to pay as much as $3.4 billion to settle complaints in the U.S. that frames of its pickup trucks and SUVs could rust through and fail, The Detroit News reports.
The class-action lawsuit was filed in a federal district court in Los Angeles on behalf of about 1.5 million owners of 2005-2010 model Toyota Tacoma midsize pickups, 2007-2008 model Tundra fullsize pickups and 2005-2008 model Sequoia fullsize SUVs.
The complaint asserts that Toyota failed to adequately protect the frames from corrosion. The company, which admits no wrongdoing, describes the settlement as a way to show it stands behind the quality and reliability of its products. The deal awaits court approval.
Under terms of the agreement, Toyota will inspect the affected trucks over a 12-year period from the date of their initial sale. The company will reimburse owners who had frames replaced and replace inspected frames as needed. Attorneys for the plaintiffs estimate the cost of replacing a frame at $15,000 per vehicle.
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