Even as it rolls out a fix for its malfunctioning accelerators, Toyota Motor Corp. TM-N is now facing new class-action lawsuits – including at least two in Canada, and another in the United States.
Regina class action lawyer Tony Merchant said Monday he had filed lawsuits in several Canadian provinces, on behalf of clients who say their Toyotas accelerated on their own and caused accidents, as well as those upset that their vehicles are now worth less.
The lawsuit also alleges Toyota tried to cover up the problems it was having with its accelerator system, and says the auto maker should have built in a failsafe system to stop sudden accelerations.
"A lot of people who've contacted us are frightened to drive their vehicles," Mr. Merchant said in an interview. "Maybe they're overdoing it … but some people are more cautious than others."
Another Canadian national class action, announced Monday, names both Toyota and the parts supplier CTS Corp. CTS-N , which was singled out for supplying accelerator pedals that Toyota says can become hard to use or even freeze in a “partially depressed” position. The car giant announced a sales freeze and expanded recalls last week.
Filed with the Ontario Superior Court of Justice by Joel Rochon of the Toronto law firm Rochon Genova LLP, the suit alleges that Toyota “knew or ought to have known” about design defects in its electronic throttle control accelerator system.
The firm released a statement identifying the class action's representative plaintiff as Toyota-owner Steven Hamilton. “Having only purchased a brand new car a few weeks ago, I simply cannot believe that Toyota would have sold me this vehicle”, the statement quotes him as saying. “I can't even resell my car now – I am seeking a full refund.”
The lawsuit must still be certified by a judge before it can go ahead. Its allegations have not been tested in court.
Stephen Beatty, managing director of Toyota Canada Inc., declined to comment on the lawsuits during a conference call.
The latest lawsuit in the U.S. – where Toyota already faces court action for deaths associated with accelerators that became stuck in car floor mats – is a federal class action filed in Corpus Christi, Tex.
Lawyers from law firm Hillard Munoz Gerra LLP said they are representing a Texas family after an accident last month that allegedly saw a 2008 Toyota Avalon unexpectedly accelerate through a stop sign. The suit blames what it says is Toyota's faulty electronic throttle control system.
Toyota has long known about the defect with their throttle control, and has done too little, too late to correct it,” lawyer Robert Hilliard said in a statement. “Much like their cars, this problem is speeding out of control and Toyota is having a hard time slamming on the brakes.”
Meanwhile, owners of recalled Toyota Motor Corp. vehicles will be able to get their vehicles repaired starting this week, the auto maker said Monday.
The repair involves installing a steel reinforcement bar into the accelerator pedal assembly that will reduce tension that has caused pedals to stick.
“With this reinforcement in place, the excess friction that can cause the pedal to stick is eliminated,” Toyota said in a statement Monday.
“The company has confirmed the effectiveness of the newly reinforced pedals through rigorous testing on pedal assemblies that had previously shown a tendency to stick.
The replacement parts will be shipped to Canadian dealers beginning on Wednesday, dealers said Monday.
Toyota Canada Inc. said it will begin fixing pedals by the end of this week.
“Nobody is going to have wait very long,” Toyota Canada managing director Stephen Beatty said in an interview Monday. “We'll be able to modify large numbers of vehicles very quickly.”
Sales of the vehicles, which represent about 60 per cent of the cars and trucks sold by Toyota Canada Inc., could resume by the weekend, Mr. Beatty told reporters during a conference call on Monday.
Production will resume next week at the North American assembly plants that were shut down this week while sales were halted.
The recall of 2.3 million vehicles in North America – 270,000 in Canada – has been a week-long public relations nightmare for Toyota, which announced last Tuesday it was halting sales and production of its most popular models in the United States and Canada, including the mid-sized Camry sedan, compact Corolla and RAV4 crossover utility vehicle.
Senior executives from Toyota's North American operations outlined the plan to fix the problem for drivers on television networks Monday, their first public statements since Toyota announced the halt in sales and freeze on production last Tuesday.
The vehicles affected by the pedal recall in addition to 2009-2010 Corollas and RAV4s are 2007-2010 Camrys, plus 2009-2010 Matrix models, 2005-2010 Avalons, 2010 Highlander crossover utility vehicles 2007-2010 Tundra full-sized pickup trucks and 2008-2010 Sequoia sport utility vehicles.
The recall because of sticky accelerator pedals is separate from another massive recall of 5.4 million vehicles that began in November and stemmed from potential entrapment of the accelerator pedal by floor mats.
Toyota's U.S. division said many dealers will stay open late to begin offering repairs to existing owners.
“We deeply regret the concern that our recalls have caused for our customers and we are doing everything we can – as fast as we can – to make things right,” Jim Lentz, president of Toyota Motor Sales USA said in a statement. “Stopping production is never an easy decision, but we are 100 per cent confident it was the right decision. We know what's causing the sticking accelerator pedals, and we know what we have to do to fix it. We also know it is most important to fix this problem in the cars on the road.”
