Toyota Motor Corp (۷۲۰۳.T) has agreed to a settlement of up to $۳.۴ billion for a federal class action brought by U.S. owners of pickup trucks and SUVs whose frames could rust through, plaintiffs lawyers have said in court papers.
The proposed settlement covers about ۱.۵ million Tacoma compact pickups, Tundra full-size pickups and Sequoia SUVs alleged to have received inadequate rust protection that could lead to corrosion serious enough to jeopardize their structural integrity, according to court papers.
Attorneys for the plaintiffs in court papers supporting the settlement estimated the value of frame replacements at about $۳.۳۷۵ billion based on a cost of about $۱۵,۰۰۰ per vehicle and the inspections at about $۹۰ million at $۶۰ per vehicle.
Toyota admitted no liability or wrongdoing in the proposed settlement filed on Wednesday before U.S. District Judge Fernando Olguin in Los Angeles.
"We want our customers to have a great ownership experience, so we are pleased to resolve this litigation in a way that benefits them and demonstrates that we stand behind the quality and reliability of our vehicles," Toyota said in a statement.
Under the settlement terms, Toyota will inspect the vehicles for ۱۲ years from the day they were first sold or leased to determine whether frames need to be replaced at company expense and reimburse owners who previously paid for frame replacement.
The settlement reached on Oct. ۳۱ covers Tacoma trucks from the model years ۲۰۰۵ through ۲۰۱۰, Sequoias from ۲۰۰۵ through ۲۰۰۸ and Tundras from the ۲۰۰۷ and ۲۰۰۸ model years.