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Toyota to pay over $1 billion in lawsuit payout

Toyota to pay over $1 billion in lawsuit payout

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Toyota Motor Corp. has decided to pay more than $1 billion US to settle numerous lawsuits and claims resulting from acceleration problems in its vehicles. Two recalls were issued in 2009 and 2010, but it was too little, too late by the automaker, which now faces a record $17.35 million US fine.

Part of the money will serve to compensate current and former owners of affected Toyota models, many of whom had to sell their vehicles at a loss. Another $325 million US will be used to install an emergency braking system in these vehicles.

Despite the settlement (pending court approval), Toyota insists that its electronics are safe as evidenced by scientific data and independent inspections.

Over 12 million Toyota vehicles across the globe have been hit with a recall due to sticky gas pedals that led to dozens of reported incidents and even a fatality.

Source: CBC News