Toyota to pay $29 million to settle suits over recalls

Posted Thursday, Feb. 14, 2013 0 comments  Print Reprints
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DETROIT -- Toyota said Thursday that it will pay $29 million to 29 states and American Samoa as part of a settlement related to safety recalls involving sudden acceleration.

State attorneys general sued Toyota in 2010 after it recalled 14 million vehicles globally for accelerating without warning. The lawsuit accused Toyota of failing to notify customers promptly about the problems.

During their investigation, the attorneys general found that poor communication between Toyota's headquarters in Japan and its U.S. operations had contributed to the problem. Toyota has promised to improve communications and give its U.S. executives more decision-making power.

Under the agreement, Toyota will pay $217,000 in attorney fees for the state of Texas, according to Texas Attorney General Greg Abbott.

Toyota has agreed to post owners' manuals online in an effort to make sure vehicle information is easily accessible.

The company will also expand its rapid response teams, which respond within 24 hours to safety issues that customers report. The teams draw from a group of 200 technical experts located across Toyota's North American operations.

Toyota said it will also reimburse some customers for expenses related to the recalls, such as rental cars or taxi rides while their cars were being repaired.

Toyota Motor Corp. has blamed sticky gas pedals, faulty floor mats and driver error for the acceleration issue. The National Highway Traffic Safety Administration and NASA have both investigated and agreed with Toyota that electronics weren't causing the problem.

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