Up to $1.4bn to cover all losses from recalls
It's almost over for the issues Toyota has had in the U.S., as the automaker put forth a proposal to settle all claims and losses that stemmed from the sudden unintended acceleration problems for a sum that totals somewhere between $1.1 billion to $1.4 billion.
"This agreement marks a significant step forward for our company, one that will enable us to put more of our energy, time and resources into Toyota's central focus: making the best vehicles we can for our customers and doing everything we can to meet their needs," said Christopher P. Reynolds, group vice president and general counsel, Toyota Motor Sales, U.S.A, and chief legal officer, Toyota Motor North America.
If accepted by the presiding judge, the settlement will be the largest of its kind in history. The proposal also stipulates that Toyota will launch a new customer-support program that will provide prospective supplemental coverage for certain vehicle components and will retrofit additional non-hybrid vehicle models subject to the floor mat recall with a free brake override system (BOS) to provide an added measure of confidence.
Further, assuming any appeals are resolved in favor of the settlement, Toyota will offer cash payments to eligible customers who sold or turned-in their leased vehicles in a period during 2009-2010, as well as other specified persons, and to eligible current owners and lessees who will not be offered BOS.
The volley of Toyota recalls reached unprecendented numbers, prompting TMC President Akio Toyoda himself to issue a statement apologizing for the problems before the U.S. Congress, wherein he stated "My name is on every car. You have my personal commitment that Toyota will work vigorously and unceasingly to restore the trust of our customers."