Toyota Motor on Wednesday sought to put more than three years of embarrassing safety issues in the US behind it when it agreed a settlement for more than $1bn for consumers who lost money through the problems.
The company, which is close to regaining the title of the world’s biggest carmaker by volumes from General Motors, said it would take a $1.1bn pre-tax charge to cover the costs of settling claims related to reports that its cars were prone to sudden, unintended acceleration.
The charge would cover payments to owners whose cars fell in value as well as covering the estimated costs of fitting new safety equipment to many affected vehicles, extending warranty periods and reaching a settlement that the district attorney of Orange County, California brought over safety issues and an action brought by a series of states’ attorneys-general.
