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Toyota nears sludge settlement
Toyota is on the verge of settling its four-year-old oil sludge case, the Japanese automaker's biggest product liability issue ever in the United States. California-based Toyota Motor Sales has reached a tentative agreement with owners of Toyota and Lexus models who complained of engines damaged by oil sludge.
Toyota has mailed details of the agreement to 7.5 million current and previous owners of 3.5 million Avalon, Camry, Celica, Highlander, Sienna, Solara and Lexus EX 300 and Lexus RX 300 models. Most complaints date to 2002 and involve model year 1997 to 2002 autos.
The agreement would settle a class- action lawsuit filed in Louisiana's Jefferson Parish. A federal judge is expected to rule on the matter Feb. 7.
The agreement would not hand any cash to vehicle owners but will give motorists whose vehicles still are not repaired time to get the engines fixed by Toyota.
In 2002, Toyota agreed to work on vehicles with oil sludge problems, but some consumers sued, contending the company wasn't doing enough.
"The settlement is a validation of the program we put in place four years ago,'' said Toyota spokesman Xavier Dominicis.
Details of carmaker's preliminary settlement
Toyota is on the verge of settling its four-year-old oil sludge case, the Japanese automaker's biggest product liability issue ever in the United States. California-based Toyota Motor Sales has reached a tentative agreement with owners of Toyota and Lexus models who complained of engines damaged by oil sludge.
Toyota has mailed details of the agreement to 7.5 million current and previous owners of 3.5 million Avalon, Camry, Celica, Highlander, Sienna, Solara and Lexus EX 300 and Lexus RX 300 models. Most complaints date to 2002 and involve model year 1997 to 2002 autos.
The agreement would settle a class- action lawsuit filed in Louisiana's Jefferson Parish. A federal judge is expected to rule on the matter Feb. 7.
The agreement would not hand any cash to vehicle owners but will give motorists whose vehicles still are not repaired time to get the engines fixed by Toyota.
In 2002, Toyota agreed to work on vehicles with oil sludge problems, but some consumers sued, contending the company wasn't doing enough.
"The settlement is a validation of the program we put in place four years ago,'' said Toyota spokesman Xavier Dominicis.
Details of carmaker's preliminary settlement