All of us have heard about the Toyota recalls over the past six months. First there was the recall in October and covered almost 4 million vehicles. This recall has come to be called the “accelerator pedal entrapment” recall. In those vehicles, the accelerator pedal configuration appears to have been faulty and was getting stuck on the floor mats.
Then, just last month, Toyota announced a recall of another 2.3 million vehicles for yet another accelerator pedal problem. That problem appears to be internal to the pedal itself. Recall number three came just yesterday and covers 2010 Prius and Lexus models. The latest recall involves problems with the vehicles anti-lock brake system. So what will the ultimate cost of all these recalls be for the world’s largest automaker?
Initial estimates of the cost for the first recall alone were in the $2 billion dollar range.That was before the second and third recall. The initial estimates took into account the costs of repairs and lost sales. With the second and third recall announcements, and additional investigations pending, the cost for repairs will certainly skyrocket. Additionally, with three recalls pending, Toyota’s reputation has been severely damaged and experts predict that sales will suffer significantly for some time to come.
At this time, at least 41 class action suits have been filed against Toyota by purchasers of their vehicles. These class action suits seek damages ranging from loss of car value to a return of profits. According to the Kelly Blue Book, Toyota vehicles have already suffered a loss of value of 3 percent of the resale value. Damages for loss of value alone could be in the billions of dollars. While class action suits will certainly not help the auto giant, the individual lawsuits that Toyota is facing, and will face in the future, are likely to cost the automaker far more in terms of monetary awards. At least 13 individual lawsuits have been filed by people, or on behalf of people, that were killed or injured as a result of the stuck accelerator problem. The lawsuits that have already been filed may be just the tip of the iceberg for Toyota. Experts say that personal injury cases involving injuries or death can be significantly more expensive than the loss of value or profits class action lawsuits. The cost to Toyota of the personal injury lawsuits is difficult to estimate as the cases that go to trial will be decided by a jury and public opinion of Toyota is on a downward spiral at the moment.
If you have suffered injuries as a result of an accident involving a recalled vehicle, contact an experienced California personal injury and product liability attorney immediately. Only an experienced attorney can guide you through the process of receiving compensation for the injuries you have suffered.
If you have been involved in a car accident and would like an experienced attorney to evaluate your case, contact the law offices of Ledger & Associates at 1-800-300-0001 or visit us at www.ledgerlaw.com.
