Skip to footer

Toyota reaches $1.1 billion settlement over 2010 recall issues

Toyota has reached a $1.1 billion settlement stemming from a mass of recalls of Toyota and Lexis vehicles in 2010. Much of the settlement will be used to compensate Toyota and Lexus owners for the loss in resale value of their vehicles.

|
Yuya Shino/Reuters/File
A showroom staff member works under the logo of Toyota Motor Corp, between cars displayed at its showroom in Tokyo February 4, 2014. Toyota has reached a settlement related to a spate of vehicle recalls back in 2010.
  • By Richard Read Guest blogger

In 2010, Toyota was on the tip of everyone's tongue -- not because of some stellar new products or sky-high safety ratings, but because of massive Toyota and Lexus recalls affecting millions of vehicles across the country.

Those recalls stemmed from numerous complaints of unintended acceleration in Toyota vehicles. While many of those complaints were later found to be the result of "driver error" -- and at least one was an out-and-out hoax --  the hype surrounding the recall dealt Toyota a big, boldface black eye. As a result, many Toyota and Lexus owners were left with vehicles that were perfectly safe, but significantly diminished in value.

Ultimately, that led to a $1.1 billion settlement, much of which was used to compensate Toyota and Lexus owners for the loss in resale value of their vehicles. The company also shelled out to the feds, including a whopping $17.35 million fine for taking far too long to recall 2010 Lexus RX models. And of course, Toyota carried out countless recalls, which cost millions upon millions more. 

Now, Toyota is slated to make another big payout: according to Detroit News, the automaker will cough up $1 billion to settle a four-year-long criminal investigation into Toyota's dealings with the federalgovernment in the wake of the recall fiasco. That investigation explored the question of whether Toyota misled government inspectors and lied to Congress in an attempt to derail or delay the costly recalls. 

Though the terms of the settlement are still under wraps, they're expected to be announced within the next few weeks. Sources suggest that Toyota won't have to admit to any wrongdoing, but in addition to paying the $1 billion fine, the automaker will perhaps be placed on probation for several years. The details of such a probation aren't known, but it's likely that the company would be subject to significantly greater government oversight during that period.

If these early reports are accurate, it could be the beginning of the end for Toyota's recall drama -- though we'd expect a few plot twists and turns before the curtain finally comes down. We'll keep you posted.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.
editor@csmonitor.com
Subscribe
Mark Sappenfield
Editor

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

Subscribe to insightful journalism

QR Code to Toyota reaches $1.1 billion settlement over 2010 recall issues
Read this article in
https://www.csmonitor.com/Business/In-Gear/2014/0211/Toyota-reaches-1.1-billion-settlement-over-2010-recall-issues
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe