Toyota Motor North America has announced a $29 million settlement agreement with the Attorneys General of 29 states to resolve problems from recalls issues from 2005 through 2010 covering sticky accelerator pedals and malfunctioning floor mats.
In the next chapter of the aftermath surrounding unintended acceleration, Toyota Motor North America has announced a $29 million settlement agreement with the Attorneys General of 29 states to resolve problems from recalls issues from 2005 through 2010 covering sticky accelerator pedals and malfunctioning floor mats. Also included in the agreement was a commitment from Toyota “to take steps to make vehicle information more easily accessible to consumers to help them operate their vehicles safely and make more informed choices.”
The settlement is the second of its kind from Toyota, who also reached an agreement last year to pay out $1.4 billion dollars to owners who lost value to their vehicles as a result of the unintended acceleration fiasco. Along with the payout, which is to be divided equally to each of the states and territories involved in the lawsuit, Toyota has also agreed to continue their rapid-response service teams and quality field offices first implemented in 2010 after massive recalls were announced to help owners of affected vehicles. Also promised were a “range of customer care amenities for owners of vehicles subject to certain recalls”, though no specifics were mentioned.
In response to the settlement announcement, Christopher Reynolds, group vice president and general counsel for Toyota Motor Sales USA and chief legal officer of Toyota Motor North America, released a statement saying, “Resolving this inquiry is another step we are taking to turn the page on legacy issues from Toyota's past recalls in a way that benefits our customers. Immediately after this inquiry was launched in 2010, Toyota began cooperating fully with the Attorneys General and implementing 'customer-first' initiatives to address their concerns and those of our customers. Today, we are pleased to have reached a cooperative agreement that reflects the commitment of Toyota's 37,000 North American team members to put customers first in everything we do."
As with their previous settlement, this agreement again does not cover many outstanding injury and wrongful death suits pending against the major Japanese auto maker, recently crowned the largest in the world. Toyota is more than prepared, they say, to defend their electronic vehicle technology, commonly blamed for accidents involving unintended acceleration, citing multiple studies including one by the National Highway Traffic Safety Administration which found that it functioned properly. Accelerator pedals and poorly designed floor mats were to blame, says Toyota; issues which have long since been recalled and repaired.
And yet despite the continuing saga, Toyota again remains at the top of the reliability charts, recently netting the best scores on J.D. Power and Associates’ 2013 Vehicle Reliability Study. In the face of well published safety issues, Toyota has maintained its reputation for quality and dependability, leading to more sales in 2012 than any other car manufacturer. With lawsuit settlements being reached, Toyota is hopeful that its battle with unintended acceleration will soon come to a close, allowing them to continue to build upon their lead over the rest of the industry. Even after recalling more vehicles than any other in three of the last four years, Toyota is maintaining its dominance.
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