News

Toyota to pay $1.2B in acceleration settlement

Toyota to pay $1.2B in acceleration settlement

SETTLEMENT: Toyota admitted it misled American consumers by concealing and making deceptive statements about two safety issues, each of which caused a type of unintended acceleration, the Justice Department said. Photo: Reuters

(Reuters) – Toyota Motor Corp will pay $1.2 billion to resolve a criminal probe into its handling of consumer complaints over safety issues, the U.S. Justice Department said on Wednesday.

Toyota admitted it misled American consumers by concealing and making deceptive statements about two safety issues, each of which caused a type of unintended acceleration, the Justice Department said.

The settlement resolves a four-year investigation by U.S. authorities.

Toyota faces hundreds of lawsuits over acceleration problems that gained public attention after the deaths of a California highway patrolman and his family, which were reportedly caused by the unintended acceleration of his Toyota-made Lexus.

The faulty acceleration prompted Toyota to recall millions of vehicles, beginning in 2009.

Last year, Toyota received approval on a settlement valued at $1.6 billion to resolve claims from Toyota owners that the value of their cars dropped after the problems came to light. It is also negotiating with hundreds of customers who said they had been injured.

“Toyota has cooperated with the U.S. attorney’s office in this matter for more than four years,” Toyota spokeswoman Carly Schaffner said on Wednesday. “During that time, we have made fundamental changes to become a more responsive and customer-focused organization, and we are committed to continued improvements.”

(Reporting by David Ingram and Aruna Viswanatha in Washington; Nate Raymond and Ben Klayman in New York; Editing by Doina Chiacu)

Recent Headlines

in Local

Northwestern Energy Requesting Rate Hike

NW ENERGY 72914

A request has been made with the Public Utilities Commission for a rate hike for Northwestern Energy customers.

in Local

Nebraska Students Experience Taiwanese Agriculture

School Books

Three Nebraska high school seniors spent last week in Taiwan, touring farms, research facilities, and learning the local culture.

in Local

Cold January Expected

Thermometer

NOAA’s Climate Prediction Center has released the January weather outlook.

in Local

Johnson Closes South Dakota Offices

tim johnson

It is another good bye, as the state offices of South Dakota Senator Tim Johnson will officially close today.

in Local

Rounds To Wait And See On Cuba Deal

rounds

South Dakota Senator-elect Mike Rounds says he will wait and see how relations change between the United States and Cuba.