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Toyota Settles Truck Frame Rust Lawsuit for $3.4 Billion

Posted in News on November 14, 2016
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Toyota has agreed to settle with as many as 1.5 million truck and SUV owners that experienced issues with severe frame rust on Tacoma, Tundra, and Sequoia models that required serious repair or replacement. The total settlement cost of $3.375 billion is based on an estimated repair cost of $15,000 per vehicle for 1.5 million vehicles and inspection costs of $90 million at $60 per vehicle, Reuters reports. Toyota admitted no wrongdoing in the settlement and agreed to inspect vehicles going back 12 years from the date first sold to determine eligibility for frame replacement. The suit alleged inadequate rust prevention measures on the original frames.

The settlement covers 2005-2010 Tacoma models, 2005-2008 Sequoias, and 2007-2008 Tundra fullsize trucks. Owners who have previously paid out of pocket for frame replacement will also receive reimbursement as part of the settlement. Toyota will additionally pay $9.75 million in attorney’s fees, $150,000 in costs and expenses, and $2,500 each to the eight named class representatives.

In a statement, Toyota said “We want our customers to have a great ownership experience, so we are pleased to settle this litigation in a way that benefits them and demonstrates that we stand behind the quality and reliability of our vehicles.”

Source: Reuters

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