Toyota may be required to pay consumers more than $2 billion after it was discovered that 260,000 Australians were affected by faulty vehicles.
Customers who purchased a Prado, HiLux, or Fortuner from the Japanese automaker between 2015 and 2020 may be entitled for compensation.
Drivers reported that their brand-new automobiles were producing foul-smelling white smoke and exhaust as a result of defective diesel particle filters.
They also claimed that the car required frequent inspections, servicing, and repairs, and that it cost drivers more money due to higher fuel consumption.
Toyota owners will get the approximated drop in value of each car at the time of sale, which is 17.5% of the average retail price, plus an additional 10% for excess GST.
Owners are eligible if they purchased a diesel Toyota Prado, HiLux, or Fortuner between October 1, 2015, and April 23, 2020, and did not sell it.
In 2019, the Australian law firm Gilbert + Tobin filed a class action lawsuit against the manufacturer on behalf of the owners of the defective models.
In April, the Federal Court of Australia decided against Toyota, saying the company participated in ‘misleading’ marketing conduct.
On Monday, the law firm will begin contacting potential owners by phone, text message, and mail to ask them to register their interest in receiving thousands of dollars in compensation.
Ken Williams, the class action’s main plaintiff, has already been awarded $18,000 in compensation for the faulty Prado he purchased in 2016.
After less than a year, the Queensland parent realized he had been duped.
While he was parked at a set of traffic lights, foul-smelling white smoke began pouring out of the vehicle, frightening him and his small children.
Mr Williams told News Corp that he had returned to the business 12 times since the ‘horrendous’ occurrence and had yet to see any progress.
‘Having the judgment in my favour was good for me but also for hundreds of thousands of other people to see they can come forward and be compensated for all the pain and suffering,’ he said of the Federal Court judgement.
Because the Federal Court is going to award damages on an aggregate basis, Gilbert + Tobin partner Matt Mackenzie termed the class action as “significant.”
The last order of this type was issued in 1998, when the Australian Competition and Consumer Commission initiated proceedings.
The ultimate amount of damages to be paid by Toyota has yet to be determined and will be determined by the number of drivers who participate in the class action.
According to estimates, the firm will be required to pay more than $2 billion.
Owners who apply for compensation and are found to be eligible will be compensated through a court-supervised distribution process.
Toyota lodged an appeal in the Federal Court of Australia, questioning the ‘factual and legal basis for the award of damages’.
The manufacturer apologised to affected customers and said it was committed to assisting drivers with faulty diesel particulate filters.
‘At the same time, we understand some customers have experienced inconvenience and discomfort from this issue. For this we apologise,’ it said.
‘We have worked continuously since becoming aware of DPF concerns on an effective resolution for affected customers.
‘At every step, we have implemented customer focused and technically grounded remedies to resolve customers’ concerns.’