Toyota Acceleration Suit to Cost $1B

    MIAMI, FL - OCTOBER 10:  The Toyota emblem is seen on the grill of a 2008 Toyota Highlander as it sits on the Affordable Motors sales lot on October 10, 2012 in Miami, Florida. The 2008 Highlander is one of 7.43 million that Toyota says it is recalling globally for a faulty power-window switch that may stop working or catch fire in more than a dozen models that include the Yaris, RAV4, Tundra, Camry, Camry Hybrid, Scion xD, Scion xA, Sequoia, Highlander, Highlander Hybrid, Corolla and the Matrix produced from 2005 through 2010.  (Photo by Joe Raedle/Getty Images)

    Joe Raedle

    Toyota’s largest recall ever—sparked by the National Highway Traffic Safety Administration’s 2009 declaration that the cars’ design could cause acceleration pedals to get caught in the floor mats—has now led to the largest auto-industry settlement ever. Toyota announced Wednesday that it will equip 3.25 million cars with a new brake-override system and reimburse Toyota owners for the reduced value of their cars. On top of that, a warranty plan for the parts believed to cause the unintended acceleration will be made available for 16 million current Toyota owners. The whole settlement is estimated to cost Toyota at least $1 billion.

    Read it at Los Angeles Times