Toyota Motor Corp. will pay up to US$3.4 billion to settle claims that certain of its trucks and sport-utility vehicles lacked proper rust protection, leading to premature corrosion.
The deal, filed in US District Court in Los Angeles, settles litigation in two states over problems with Toyota Tacoma trucks from model years 2005 to 2010, Tundras from 2007 to 2008 and Sequoias from 2005 to 2008, the Wall Street Journal reports.
“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.
The deal is subject to court approval. As part of the agreement, Toyota does not admit to any wrongdoing.
Once approved, consumers will be entitled to an inspection of their vehicles and ultimately replacement of its frame if the car is found to have the faulty rust protection.
Car owners who already have replaced their frames will also be reimbursed.
About 1.5 million vehicles in the US are covered by the settlement, court filings show.
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