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Toyota acceleration settlement gets preliminary OK

Published: December 28, 2012 Comment on this article

Toyota, which has blamed driver error, faulty floor mats and stuck accelerator pedals for the problems, plans to take a one-time, $1.1 billion pre-tax charge against earnings to cover the estimated costs of the settlement. Berman has said the total value of the deal is between $1.2 billion and $1.4 billion.

Toyota plans to offer cash payments from a pool of about $250 million to eligible customers who sold vehicles or turned in leased vehicles between September 2009 and December 2010. The company also will provide supplemental warranty coverage for certain vehicle components and retrofit about 3.2 million vehicles with a brake override system designed to ensure a car will stop when the brakes are applied, even if the accelerator pedal is depressed.

The settlement would also establish additional driver education programs and fund new research into advanced safety technologies.

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Online:

Settlement website: http://www.ToyotaELsettlement.com

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