TOYOTA IS facing dozens of class-action lawsuits in the US that could cost it billions of dollars in damages as the Japanese company struggles to contain the fall-out from its mass recall of faulty cars.
Akio Toyoda, Toyota’s chief executive, is due to give an update today about what steps the company is taking to address the design flaws that led to unintended acceleration and braking problems in some of its most popular models.
Mr Toyoda’s presentation is part of a belated drive to counter the negative fall-out, including the proliferation of lawsuits and two US Congressional committee hearings that will probe its response to drivers’ complaints. One committee has asked Mr Toyoda to testify during a planned visit to the US next month.
Tim Howard, a law professor at Northeastern University in Boston who is co-ordinating litigation against Toyota, estimated that 44 class-action lawsuits had been filed under state and federal law by the end of last week. He estimated that the claims could reach $3.6 billion, based on an average loss of $600 per vehicle.
Some claims relate to deaths, injuries and property damage allegedly caused by defective parts, while others are based on a drop in Toyota vehicles’ trade-in values.
The National Highway Traffic Safety Administration, which regulates vehicle safety, has said it has received complaints linking unintended acceleration in Toyota vehicles to 34 deaths and 22 injuries. – (Copyright The Financial Times Limited 2010)
