Toyota’s recall woes: Lexus settlement | The Economist

15 Янв 2015 | Author: | No comments yet »

Lexus settlement

TOYOTA pay $1.2 billion to settle a investigation by America’s Justice into how the carmaker handled linked to problems with acceleration nearly five ago. Both the Justice and the FBI had been looking to see whether the giant had intentionally misled safety regulators after it receiving complaints that of its vehicles could surge out of unexpectedly. Toyota eventually more than 10m vehicles in and millions more worldwide. It has spent billions to settle lawsuits and to repair those

The settlement comes just as the Department ramps up a preliminary into how General Motors has the recall of 1.6m vehicles with a faulty ignition That technical problem—now to be linked to at least a dozen revealed just last but an internal GM timeline indicates the carmaker first knew of the switches as early as 2001.

The settlement was announced by Eric America’s attorney-general, who declared had violated a basic compact its customers who have a right to that their vehicle is In addition to the payment of $1.2 the agreement Mr Holder outlined that Toyota will further actions to prevent lapses in its behaviour in the future. In the Justice Department defers

The first of Toyota’s recalls of unintended acceleration occurred in 2009, shortly after an of the California Highway Patrol and family members were in a fiery crash involving a model. It soon became that the luxury sedan and a of other Toyota models had mats that could come loose and jam the accelerator

But barely three months Toyota was forced to act again it acknowledged that millions vehicles might be equipped potentially sticky accelerator The carmaker halted sales of a of products until it could those on dealer lots as as vehicles already sold.

It quickly emerged that officials had known about the for some time. One internal released prior to an angry on Capitol Hill, showed the crowing about having the National Highway Traffic Administration out of ordering a recall, Toyota millions of dollars. has insisted that it did not intentionally federal regulators, but the investigation otherwise.

The Japanese company—the largest carmaker based on sales—has settled a number of related to the unintended-acceleration problem. market studies have that Toyota has largely its image for making reliable.

A separate question is whether GM be able to overcome its own safety The timing of the Toyota settlement is the government is putting an end to the last recall case, just as it up to deal with the next big explains Karl Brauer, an at Kelley Blue Book, a research firm. “The are similar because they involve a long, established of vehicle incidents that years to identify and address.”

GM is taking more than one out of Toyota’s book. On March GM appointed a new global safety step the Japanese firm took after its unintended-acceleration And Mary Barra, GM’s new executive, is herself taking the investigating the ignition-switch crisis—just Toyota’s boss, Akio On March 18th Ms Barra once again apologised for the recall, adding that, goal is to make sure something like this happens again.”

(This article was updated on 19th at 2.50pm GMT.)

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