Toyota appeals Australian ruling on customer compensation

Toyota Motor Corporation said it had appealed a decision by the Australian federal court ordering it to reimburse customers who bought defective Toyota vehicles, following a class action lawsuit filed against its Australian subsidiary.

According to the ruling, hundreds of thousands of Australian customers who bought defective Toyotas will be able to claim damages starting this week, with payouts potentially totaling AUD 2.7 billion (US$1.9 billion) based on an average payment of AUD 10,500 per vehicle. according to local reports. The payments are now postponed pending the appeal procedure.

A federal court ruled in April that Toyota had misled customers into selling and marketing vehicles with defective particulate filters, reducing the residual value at the time of sale by more than 17%. The class action covered 264,000 Hilux, Fortuner and Prado vehicles sold in the country between October 2015 and April 2020.

Toyota Australia said it had appealed to the court on June 10 “to challenge the factual and legal basis for awarding damages”. The company argued that “many of the class action plaintiffs did not experience any issues related to the defective filters, such as significant white smoke or a reduction in engine power”.

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