(Fox Weekly) — Toyota Motor Corporation is expected to pay a record $1.2 billion settlement to the Justice Department. The settlement revolves around a criminal probe within the safety issues Toyota has. This new settlement deal could serve as a template for how U.S. authorities approach a similar investigation into General Motors Co.
This settlement just comes after General Motors underwent investigation over it’s handling and ignition issues. General Motors had recalled more than 1.6 million vehicles after 10 years of the issue being discovered. The issue with the cars have caused have been linked to dozens of deaths.
“My hope and expectation is that this resolution will serve a model for how to approach future cases involving similarly situated companies,” Attorney General Eric Holder told a news conference on Wednesday.
Toyota is “effectively on probation for three years,” U.S. Attorney Preet Bharara, whose office conducted the investigation, said at the news conference.
The settlement resolves a 4-year investigation by U.S. authorities, but the major issues dates back to 2007, when the National Highway Traffic Safety Administration opened an inquiry into the Lexus ES350 model after reports of self-acceleration by the vehicle, which is manufactured by Toyota.
Reported by Fox Weekly Staff Writers