Toyota Acceleration Suit to Cost $1B

BIG BILL

Updated Apr. 21, 2017 2:38PM ET / Published Dec. 26, 2012 7:27PM ET

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.

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Toyota Acceleration Suit to Cost $1B

Joe Raedle