tyt27 Dec 2012 18:54
Thu 27 December 2012 13:15
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Japanese car-manufacturer Toyota has announced plans to pay over one billion dollars in a settlement for hundreds of lawsuits involving defects on some of its cars.
The payout, which is still awaiting the approval of a federal judge, is set to become the largest of its kind in US history.
The problem is related to the acceleration of the cars affected, with the vehicles suddenly accelerating without the drivers' instruction.
Group Vice-President Christopher Reynolds said: "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 turning the page on this legacy legal issue is in the best interests of the company, our employees, our dealers and, most of all, our customers."
Under the agreement, a number of customers will receive a direct payout from Toyota. The company is also reportedly set to install break-override system in over three million vehicles.
Lawyer for the plaintiffs, Steve Berman, commented: "After two years of intense work, we are pleased that Toyota has agreed to a settlement."