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NEWS
Toyota settles with US states
Poor communication cited as grounds for car company to pay penalty to 29 statesToyota has learned to its cost that it pays to keep open the lines of communication with customers – even when the customers' claims are in dispute.
NASA and the US government's National Highway Traffic Safety Administration (NHTSA) have cleared Toyota of liability for 'unintended acceleration' cases that prompted a recall of up to 14 million cars around the world. But that hasn't prevented the US federal government and 29 states seeking redress through the courts against the car company.
According to Associated Press, the federal government has already fined Toyota US $17.4 million for being too slow reporting safety-related issues to the government. Furthermore, the attorneys general of the 29 states have secured a settlement worth $29 million from Toyota on the same legal grounds. The states banded together in 2010 to sue Toyota for 'failing to notify customers promptly about the problems'.
An investigation of the way Toyota handled customer complaints ascertained that communications between Toyota in Japan and the American operations had 'contributed to the problem'. As part of the settlement with the states, Toyota has agreed to speed up the process in future by allowing American-based executive staff more autonomy to make decisions. And the company will also address the slow pace of communications from one side of the Pacific to the other.
Toyota will post vehicle owners' manuals on-line for easier access to information concerning each vehicle's specification. In addition, Toyota has promised to expand its rapid response (customer service) teams that are tasked with contacting dealers and customers within 24 hours of the safety complaint being received. Customers who incurred expenses (for rental vehicles or taxis) while their Toyotas we're being evaluated, will have those expenses repaid, under the terms of the settlement.
Even though NHTSA and NASA investigations have determined that crashes attributed to 'unintended acceleration' were more likely due to driver error – with drivers stamping on the accelerator instead of the brake pedal – or ill-fitting floor mats interfering with the accelerator, Toyota is still in court, defending itself against civil actions from Toyota owners. One case, in the matter of two people who died when their Camry struck a wall at speed, was recently concluded for an undisclosed sum.
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