Toyota pays the price for manufacturing defect
|   Wednesday, January 02, 2013
Many car manufacturing brands have faced lawsuits in the past. Many of them have been settled in the court while in others there have been mutual agreements. The dimensions and sensitivity of this lawsuit vary from one to another. The seriousness of the lawsuits also differs in many senses. Their effect on the economy of the car manufacturing company and also the effected individuals and institution differ greatly. However, some lawsuits become a part of history; or rather make history of their own, through some speciality or the other.


Toyota is on its way to settling one of the biggest lawsuits in the history of lawsuits regarding automotive purposes. There have been lawsuits against Toyota by various individuals and institutions, including attorneys from 28 states of the country on the same single matter, the sudden acceleration of the car without notice resulting in accidents. The biggest of this lawsuit is on its way to be settled where Toyota has agreed to change the acceleration system and add extra security features to more than 3.2 million cars. The estimated expenditure of the company in settling this single lawsuit is in the range of billion.

Many lawsuits have been filed by various sources against Toyota. And Toyota has taken responsibility of the manufacturing defect found in various models of the car. They are trying to settle these lawsuits as swiftly as possible. Many of the lawsuits are still pending but the most major lawsuit is walking on the path of settlement. Toyota has shown good judgement in deciding to take responsibility of their fault. This has decreased the margin of their losses by much. However the settlement is still pending approval and a lot can still go wrong and the situation may become worse for the company.

The lawsuits that have been filed include lawsuits for personal injuries. The fault is really very dangerous and the effect of this fault is many violent accidents. A sudden acceleration of the car makes the driver lose control and this leads to road accidents. Complaints started coming in as early as2010 with reports of sudden and unwilling acceleration of the car without any participation of the driver. This was just the start of a chain reaction that resulted in a huge economic loss for Toyota.

The company has already paid a fine of 60million dollars to the National Highway Traffic Safety Administration. This is followed by the major settlement of an estimated one billion. There are many more pending lawsuits against the company. So the financial setback that the company is going to suffer from is going to affect both the present as well as the future performance of the company. It may lose the reputation that it has earned over the years as a leading car manufacturing brand.

The authorities at Toyota, however, think otherwise. They see the agreement as a positive step for the company, one that promotes the image of the car manufacturing brand as accompany dedicated to produce better cars. It is up to the customers now to decide.
PHOTO GALLERY
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