Toyota to Pay Huge Settlements for Violation of Vehicle Values
|   Tuesday, January 01, 2013
The Class Action case was the largest legal action against Toyota on the concern of economic losses by the automobile owners. Case was filed against Toyota after several complaints made on the issue that Toyota car without any warning were accelerating all of a sudden that led to accidents and sufferings by the vehicle owners. While cases of wrongful death lawsuits and personal injury are still pending Toyota has been newly accused by advocates from several states of opting unfair business strategies to increase its market share.


The expected agreement that is filed in Federal District Court, California if approved by the judge James V. Selna would be the greatest settlement made by any automobile manufacturer till date in the automobile industry. Toyota would have to pay a gigantic amount in cash and has to make multiple recalls to over a 3 million cars and install improved safety features.
In U.S. Toyota has recalled a total of 8 million cars related to floor mats dispute that could have intertwined with the pedals that could have opened the throttle open or with accelerator pedals.

The case of class action also commented on the faulty electronic system in Toyota cars, but when further investigated by the government officials, last year they concluded that the case of unnatural and sudden acceleration had nothing related to the faulty electronic system.

The National Highway Traffic Safety Administration has accused Toyota on the evidence of failing to inform regarding sudden rapid acceleration to the internal information regulators, which the company has always attributed to faulty and rush driving and has fined Toyota more than 60 million dollars.
The recalls made by the automaker seem to envelope Toyota into greater problems disrupting its image in the market about the sterile reputation of the company in the field of reliability, quality and safety.

Toyota's chief legal officer in the US Christopher P. Reynolds has said all these cases would help Toyota to concentrate more on optimizing resources, time and energy to quality vehicles with enhanced safety mechanisms for their customers and deliver the best.

Toyota has agreed to refund a sum total of 250 million dollars to the former customers affected by acceleration mishap. The automaker plans to install an override braking system in the cars whose pedals may intertwine in the floor mats. The company claims it has installed the new safety system in more than 2.5 million cars with more than half a million still remaining to be installed with the improved braking system. Toyota has also agreed to provide a customer support program 24X7 to the existing 16 million customers who would be also eligible for free service and repair up to 10 years on certain parts. Toyota has also undertaken an intense research on safety related to unintentional acceleration and driver behaviour by paying about 30 million dollars.

According to legal experts the legal settlements by Toyota is a tactical move by the company to regain the trust of its customers and reconstruct its prestige in the market.
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