The world’s biggest automaker, Toyota has agreed to a $3.4 billion settlement after metal body frames on its pickups and SUVs were found to lack sufficient rust protection, causing them to prematurely corrode.
According to the court filings, the settlement, which won preliminary approval from a federal judge in Los Angeles earlier this week, covers about 1.5 million vehicles in the United States. Toyota owners in two states filed suit over problems with their vehicles, which include Toyota Tacoma trucks from model years 2005 to 2010, Tundras from 2007 to 2008 and Sequoias from 2005 to 2008.
Lawyers for the plaintiffs estimated the cost of frame replacements at about $3.375bn. That was based on a cost of about $15,000 per vehicle and inspection costs of about $90m, at $60 per vehicle.
Under the terms of the deal, Toyota must notify owners of the affected vehicles and perform annual inspections for up to 12 years from the first year the individual owned the truck. If premature corrosion is found, Toyota will replace the frames at no cost to the vehicle’s owner.
It was reported that the ultimate size of the settlement could change depending on the number of vehicles the company actually has to repair.
The company released a statement confirming the settlement, saying, “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.”
