The Straits Times
Published on Dec 27, 2012

Toyota reaches $1.3 billion deal with US owners over recalls


CHICAGO (AFP) - Toyota has agreed to pay about US$1.1 billion (S$1.3 billion) to settle a class action lawsuit launched by US vehicle owners affected by a series of mass recalls, the Japanese automaker said on Wednesday.

The deal will cover the cost of installing a free brake override system in millions of vehicles affected by the recalls and cash payments to those who sold their vehicles or decline the brake override.

Once lauded for its safety standards, Toyota has been forced into damage control mode in recent years after recalling millions of vehicles over defects.

Earlier this year it added two models to a controversial 2009 recall launched after floor mats became trapped under the accelerator, which was linked to accidents that allegedly caused dozens of deaths.