Toyota Initial Settlement Over Defective Fuel Pumps Reaches $150M

Toyota Motor Corporation is a step forward toward settling the US class-action litigation tied to fuel pump recalls. According to a report by Reuters, a preliminary settlement was filed this week in federal court in Brooklyn, reaching up to $150 million. It now awaits a judge's approval.

 Under the settlement, Toyota is said to extend the fuel pumps' warranties to 15 years or 150,000 miles, whichever comes first. The company will also provide customers with complimentary loaner vehicles and towing options for repairs. Moreover, previous repairs, including loaners and towing, are also to be reimbursed.

According to Reuters' report, Toyota and Denso International America Inc. agreed to settle but did not admit wrongdoing.

"We are pleased to have resolved this litigation in a way that demonstrates our commitment to providing customers with a great ownership experience," Toyota said in a statement.

The proposed settlement covers owners and lessees of select Toyota and Lexus with model years 2013 through 2020, affected by defective Denso fuel pumps. The list has grown to around 5.8 million vehicles worldwide – 3.36 million of which are in the US. The largest addition to the long list of affected vehicles was in October 2020 with 1.5 million Toyota and Lexus units.

The list covers vehicles as old as the 2013 Lexus LS 460 up to the 2020 Toyota RAV4. The RAV4 has been Toyota's best-seller in the US for several years, placing fourth in the rankings in 2021 just behind the full-size American trucks.

The recall indicated that the fuel pump on the affected vehicles could suddenly fail. Apart from dashboard warning lights, the engine could stall as a result. The stalled engine could lead to loss of power assist in steering and braking, which could be potentially dangerous at high speeds. The fix, of course, is fuel pump replacement, which Toyota will provide free of charge.