Toyota’s $1.1 billion unintended acceleration payout: what it means for owners
Toyota Motor Corp. has agreed to pay $1.1 billion to pay claims in regard to its recall of millions of vehicles with unexpected unintended acceleration, as part of the largest-ever auto civil settlement in history. The settlement stems from a class-action lawsuit filed over alleged unintended acceleration cases reported in 2009 to 2010. The automaker has recalled over 8 million vehicles in relation to the 2009-2010 unintended acceleration issue. In total, the newly announced settlement affects roughly 16 million cars.
So what does the settlement mean for consumers? Well, the payout will affect each segment of driver differently. For example, former Toyota drivers will be affected differently by the lawsuit than a current driver. Here’s how it breaks down:
Former Toyota owners
A $250 million has been set aside for past Toyota drivers to compensate their vehicle’s reduction in value. Specifically, the $250 million fund covers Toyota owners that sold their vehicle, or returned a leased vehicle prior to lease expiry. If the fund is found to contain insufficient funds, it will pay out a pro-rated amount.
Current Toyota owners