Toyota revealed today that they have reached an agreement to "resolve economic loss litigation" regarding recent recalls and is committed to a new plan to deliver better vehicles to customers. The company announced the new plan in a press release.
"This agreement marks a significant step forward for our company, one that will enable us to put more of our energy, time and resources into Toyota's central focus: making the best vehicles we can for our customers and doing everything we can to meet their needs," said Christopher P. Reynolds, group vice president and general counsel, Toyota Motor Sales, U.S.A, and chief legal officer, Toyota Motor North America in the release.
Click here for more information on the agreement.
Reynolds added that the company plans on keeping with the core principles that Toyota has been built on and has structured the new agreement that puts customers first. They plan on demonstrating this commitment with the new line of vehicles they will be releasing in 2013.
If the loss settlement is approved by the judge supervising multi-district litigation, currently pending in the U.S. District Court for the Central District of California, Toyota will then launch a new customer service support system to allow for better supplemental support for their vehicles.
Toyota will also offer cash payments to customers who sold or turned-in their leased vehicles from 2009 through 2010. The proposed agreement would also allow for additional driver education programs and fund new research for safety technology according to the release.
"This was a difficult decision - especially since reliable scientific evidence and multiple independent evaluations have confirmed the safety of Toyota's electronic throttle control systems. However, we concluded that turning the page on this legacy legal issue through the positive steps we are taking is in the best interests of the company, our employees, our dealers and, most of all, our customers."
Toyota will also be taking $1.1 billion pre-tax charge against earnings to cover the costs of the economic loss settlement and the potential resolution costs of civil litigation.
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