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Fiji Time: 4:10 AM on Friday 25 April

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Recall for Toyota

Afp
Friday, November 16, 2012

LOS ANGELES — Toyota has agreed to pay $US25.5million ($F45.5m) to shareholders who lost money after the Japanese carmaker's stock price plummeted in the wake of a series of mass recalls.

The settlement was filed hours before Toyota announced a global recall of 2.77 million vehicles over water pump or steering problems on Wednesday, in the latest blow to the firm's reputation after a spate of earlier call backs.

The firm last month issued a huge global recall of 7.43 million vehicles, including its popular Camry and Corolla models, over a possible fire risk tied to a fault in its electric windows. Earlier this year it added two models to a controversial 2009 recall launched after floor mats became trapped under the accelerator, which was linked to accidents that allegedly caused dozens of deaths.

Toyota has since worked hard to regain its reputation for safety, while at the same time fighting off the impact of the economic crisis, a strong yen and the devastating 2011 quake-tsunami disaster.