Toyota - Downfall around the corner..?

Posted: 14 years ago
How many 2008-2010 Toyota/Lexus owners in this forum..? Have you guys experienced any mechanical problems with your cars..??  Are you part of the the class action law suit..? πŸ˜†πŸ˜†.. only if i had purchased a lexus instead..πŸ˜†πŸ˜†πŸ˜†

Are you guys at all affected with this current uproar..?  Would you still consider purchasing a Toyota manufactured vehicle..? πŸ€”


Class-action suits may cost Toyota billions

Owners claim recalls have caused the value of their vehicles to tumble


MIAMI - Toyota owners claiming that massive safety recalls are causing the value of their vehicles to plummet have filed at least 89 class-action lawsuits that could cost the Japanese auto giant billions, according to a review of cases, legal precedent and interviews with experts.

Those estimates do not include potential payouts for wrongful death and injury lawsuits, which could reach in the tens of millions each.

Still, the sheer volume of cases involving U.S. Toyota owners claiming lost value β€” 6 million or more β€” could prove far more costly, adding up to losses in excess of $3 billion for the automaker.

Such class-action lawsuits "are more scary for Toyota than the cases where people actually got injured," said Tom Baker, a University of Pennsylvania law professor. "A super-big injury case would be $20 million. But you could have millions of individual car owners who could (each) be owed $1,000. If I were Toyota, I'd be more worried about those cases."

As Toyota continues to deal with the recalls and wavering public confidence in its vehicle safety, its biggest financial fight may be in the courtroom. A key decision could come at a March 25 hearing in San Diego, where a panel of federal judges will consider whether to consolidate the mushrooming cases into a single jurisdiction.

After that, a judge will decide whether all claims filed by Toyota owners nationwide can be combined in a single legal action β€” known as "certifying a class" β€” and whether the claims have enough merit to move toward either trial or settlement.

Toyota owners suing the company contend their vehicles have dropped in value because of the recalls and that Toyota knew all along about safety problems but concealed them from buyers. They point to evidence such as Kelley Blue Book's decision this month to lower the resale value of recalled Toyotas an average of 3.5 percent, ranging from $300 less for a Corolla to $750 less for a Sequoia.

The lawsuits started appearing on state and federal dockets last fall, when Toyota began recalling some 8 million vehicles worldwide because of persistent complaints about sudden unintended acceleration. The National Highway Traffic Safety Administration reports that 52 people have died in accelerator-related crashes.

The AP conducted an extensive review of federal court filings and uncovered a total of 89 class-action lawsuits filed nationwide as of Monday. Toyota attorneys said last week in a court filing that the company is aware of 82 such cases.

One leading attorney in the class-action effort, Northeastern University law professor Tim Howard, said the number of owners claiming economic damages because of the recalls could reach 6 million. If each were awarded $500 β€” likely a conservative estimate β€” Toyota would have to fork over $3 billion in economic loss damages alone.

This does not include possible payouts in wrongful death or injury cases as well as lawsuits filed by shareholders claiming losses from share prices that have tumbled more than 16 percent since January as concerns linger over if the company has recalled all the vehicles it needs to and if it found the right fix.

One Prius driver said on Monday his car sped out of control on a San Diego County freeway, and came to a safe stop after a 30 mile ride. The incident occurred two weeks after he had taken his vehicle in for repairs at a dealership and was turned away.

Jackpot for lawyers?
Corporations often settle big cases rather than risk an even bigger damage award at a trial.

Automakers in the past have been forced to pay vehicle owners for lost value because of safety problems. Ford, for example, agreed in 2008 to compensate 800,000 Explorer owners who sued because of rollover dangers. That settlement provided owners only with vouchers of between $300 and $500 to buy new Ford products.

In that case, the lawyers received about $25 million in fees and costs, and the Toyota case could result in a similar windfall for attorneys. A study by the Federal Judicial Center concluded attorneys in class-action lawsuits typically get fees between 27 percent and 30 percent of what they recover in damages β€” which could reach $1 billion in a $3 billion settlement.

Toyota could end up facing an even bigger payoff if a judge decides attorneys' fees should be added to any plaintiffs' award.

The San Diego hearing will be conducted before the seven-member Judicial Panel on Multidistrict Litigation, which decides whether similar lawsuits filed in multiple federal districts should be centralized in one location for pretrial motions, hearings and the like. A federal judge would be chosen to determine whether the Toyota cases should be certified as a class action and make other key rulings, such as deciding on a likely Toyota motion to dismiss.

Under federal law, a class action must have 100 or more plaintiffs, damages sought must exceed $5 million and the judge must be persuaded the claims are identical or very similar. If a class is not certified, each lawsuit would have to be pursued on its own.

Toyota has so far recalled 5.6 million vehicles in the U.S. because of problems caused by what it says are accelerator pedals that become sticky or get trapped under floor mats.

Another 437,000 Prius models have been recalled worldwide for what Toyota says is an antilock-braking glitch.

The vast majority of lawsuits claiming economic loss stem from the accelerator problems, and many contend the company's effort to fix floor mats or accelerator pedals are insufficient. Dozens of lawsuits claim Toyota has ignored problems with its electronic throttle system.

Separately, NHTSA is looking into claims from more than 60 Toyota owners that their vehicles continue to surge forward unexpectedly despite having their vehicles repaired.

Toyota has denied that its electronic throttle is to blame and has been focused on dealing with the recalls β€” a strategy that could affect the outcome of the lawsuits.

"Toyota's strategy (should be) to fix them, fix them immediately and at no cost, and do it as quickly and effectively as you can so after the dust settles, your car's value won't have depreciated much," said Edward C. Martin, a law professor at Cumberland School of Law at Samford University in Birmingham, Alabama.

"We do not believe that electronics are at the root of this issue," Toyota spokesman Mike Michels said Monday.

In some of the lawsuits, Toyota owners seek additional damages because they're afraid to drive what they call "defective and dangerous" cars, while still others claim insurance premiums will likely go up.

"My wife has been worried about it for a while. She's eight months pregnant and she's terrified to drive the car now," said Jerry Borbon, a Miami lawyer who is still driving his 2008 Toyota Prius and is a plaintiff in a potential class-action lawsuit.

"We thought about trying to get rid of it, but we're stuck with it," he said, adding Toyota's damaged reputation has made it hard to sell the vehicle. "I don't feel secure in the car and I don't want my wife driving it."

"There are a lot of unknowns and the big questions are what did Toyota know when," said Catherine Sharkey, a professor at the New York University School of Law. "If it turns out that Toyota had knowledge of these defects and did not act soon enough, then the best strategy is settlement."

2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

URL: http://www.msnbc.msn.com/id/35776697/ns/business-autos/


 
Posted: 14 years ago
This is a tactful plan, I tell you.πŸ˜† Government playing games as usual to help Ford, as usual. Wasn't the bailout plan enough for them?πŸ˜† Poor Toyota. I'm feel for them.
Posted: 14 years ago
Originally posted by debayon


This is a tactful plan, I tell you.πŸ˜† Government playing games as usual to help Ford, as usual. Wasn't the bailout plan enough for them?πŸ˜† Poor Toyota. I'm feel for them.


hahaha... its funny how your views are just same as my sister's... she thinks its a government concocted conspiracy theory to help the American automakers..🀣
Edited by Meena1 - 14 years ago
Posted: 14 years ago

Originally posted by Meena1




hahaha... its funny how your views are just same as my sisters... she thinks its a government concocted conspiracy theory to help the American automakers..🀣
It is. I mean look at it. Before this controversy, Toyota were better in terms of efficency and price, but the government did some 'badmashi' you know. πŸ˜†  Sent the FBI to do some 'nakabandi'πŸ˜†

Hmm, I like your sisters alreadyπŸ˜†

Edited by debayon - 14 years ago
Posted: 14 years ago
Originally posted by debayon


It is. I mean look at it. Before this controversy, Toyota were better in terms of efficency and price, but the government did some 'badmashi' you know. πŸ˜†  Sent the FBI to do some 'nakabandi'πŸ˜†

Hmm, I like your sister alreadyπŸ˜†


Sister..πŸ˜† missed the apostrophe.. πŸ˜†

i doubt it that its a governmnet created controversy..  .. if you are reading up on the whole issue.. you'll see.. They had been neglecting certain safety protocols in their mass production.. .. and superiors new abt it but ignored the matter..  this is coming from  Toyota employees.. 

Posted: 14 years ago
I personally never liked Toyota..  Honda's way better and abt the same price..
Posted: 14 years ago
Originally posted by Meena1



Sister..πŸ˜† missed the apostrophe.. πŸ˜†

i doubt it that its a governmnet created controversy..  .. if you are reading up on the whole issue.. you'll see.. They had been neglecting certain safety protocols in their mass production.. .. and superiors new abt it but ignored the matter..  this is coming from  Toyota employees.. 

Yes, not all is wrong, you know. The Toyota employees have been negliegent in their jobs. But as ACP would say "Kuch toh gadbad hain"πŸ˜† I think something still is fishy. As I said, the $15 billion bailout plan wasn't enough or something? What did Ford do with that money? In turn, they just shut Chrysler. And now this.
Posted: 14 years ago
Originally posted by debayon


Yes, not all is wrong, you know. The Toyota employees have been negliegent in their jobs. But as ACP would say "Kuch toh gadbad hain"πŸ˜† I think something still is fishy. As I said, the $15 billion bailout plan wasn't enough or something? What did Ford do with that money? In turn, they just shut Chrysler. And now this.


Chrysler was crap anyways.... good thing it shut down..πŸ˜†πŸ˜† i cant stand american cars.. Caddi is the only exception..πŸ˜†πŸ˜†πŸ˜†

i have a feeling they paid a portion of that $15 bill to the those Toyota employees..πŸ˜†

please dont bring ACP in the picture.. the dude isn't even smart enough to connect the clues in Blues Clues.. and you are talking abt this complicated case..πŸ˜†πŸ˜†πŸ˜†

ps. do you know what Blues Clues is..?πŸ˜†
Posted: 14 years ago
Originally posted by Meena1




Chrysler was crap anyways.... good thing it shut down..πŸ˜†πŸ˜† i cant stand american cars.. Caddi is the only exception..πŸ˜†πŸ˜†πŸ˜†

i have a feeling they paid a portion of that $15 bill to the those Toyota employees..πŸ˜†

please dont bring ACP in the picture.. the dude isn't even smart enough to connect the clues in Blues Clues.. and you are talking abt this complicated case..πŸ˜†πŸ˜†πŸ˜†

ps. do you know what Blues Clues is..?πŸ˜†
Why would Ford give some of it's money to Toyota? They are rivals.πŸ˜† Meena ji!!!πŸ˜†
 
AYe, you should see the 1994 episodes, those were the epics. That was when Inspector Shrikant Pradhuyman really used his brains, he was the only guy on CID, actuallyπŸ˜†
 
Yes, I know what Blue Clues is, do you know what Shin Chan is?πŸ˜›πŸ˜‰
Posted: 14 years ago
What has happened with Toyota is sad.........we have a Toyota Camry but we bought it in 1998........Toyota has build its reputation as SAFE cars  and this whole fiasco has hurt the reputation.........We are thinking of buying a car for our son next year and we were thinking about Toyota but we are a little hesitant now......we have still not lost our trust in Toyota but we will wait a little to see how it goes.......I am sure once Toyota gets hold of the problem...their cars will be better than before.........but I really feel bad for them.......and also how other companies are trying to take advantage of them.........well..its business......ye to hona he tha..

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