Atlanta, Georgia Personal Injury Lawyer
Atlanta personal injury lawyer blog
Tuesday, February 9, 2010
Several Lawsuits Filed over Toyota Recalls
Friday, February 5, 2010
Honda Recall on Heels of Toyota Recall Has Japanese Automakers Worried
Monday, February 1, 2010
Recall Causes Unexpected Consequences for Toyota Owners
Toyota Motor Corp. has estimated that the cost of recalls linked to the sudden acceleration problem will be $2 billion for warranty payments and lost sales. But BusinessWeek reports that lawsuits against Toyota will raise the cost well beyond $2 billion.
As of today, at least 41 class action lawsuits have been filed against Toyota. At least 13 individual lawsuits allege personal injury or death due to sudden acceleration of Toyota vehicles. I expect dozens more lawsuits to be filed against Toyota. After all, we’re talking about the world’s largest automaker and an unprecedented recall.
Attorney Michael Louis Kelly of California has filed two suits against Toyota, and he says that his clients will demand cash. In the past, some class action lawsuits against auto manufacturers have been settled with coupons for use with future purchases. Kelly says that such coupons will not suffice in this case.
“The damages could be in the billions of dollars in the loss of value alone,” Kelly said in an interview. “I don’t think we’re talking about coupons under any circumstances.”
The value of Toyota vehicles has lost approximately 3 percent in resale value because of the recalls. Toyota’s market value dropped 19 percent from January 20 through February 5.
Class actions rarely go to trial and many are settled with coupons. For example, Ford settled a 2007 class action with $500 discounts to owners of Explorers with recalled tires. However, less than 1 percent of the eligible customers actually used the coupons to buy a new Ford.
“Toyota will do what they think they should do to fix these automobiles,” Kelly said, “but I don’t expect them to reimburse for the lost value of these cars.”
Toyota Brake Recall
The newest recall involves 437,000 hybrid cars to repair faulty brake systems. At least four consumer class action lawsuits seek damages related to faulty hybrid brake systems. More lawsuits are expected. Sales of SAI and Lexus HS250H sedans and Prius plug-in hybrids have been stopped.
On February 4, Toyota announced that it will have to pay an estimated $1.12 billion on warranty expenses and will lose $895 million in sales due to the recall. Fortunately for Toyota, they also have about $23 billion in cash. They probably won’t be filing for bankruptcy any time soon. But things are not looking good for the auto giant.
Toyota investors have filed their own class action lawsuit, claiming that Toyota made “materially false and misleading statements” about the sudden acceleration problem, which caused stocks to trade at inflated levels before the big recall announcement on January 21, 2010.
Law professor Carl Tobias of the University of Richmond points out the personal injury and wrongful death lawsuits will cost Toyota much more than the defective product cases.
“It’s important to distinguish the personal injury cases from the product disappointment or lemon cases,” said Tobis. “The latter are worth a lot less, in terms of payment.”
Have you or a loved one been injured by a defective automobile? If so, call an experienced Georgia personal injury lawyer immediately. Call MLN Law at 404-531-9700 to schedule a free consultation.
As of today, at least 41 class action lawsuits have been filed against Toyota. At least 13 individual lawsuits allege personal injury or death due to sudden acceleration of Toyota vehicles. I expect dozens more lawsuits to be filed against Toyota. After all, we’re talking about the world’s largest automaker and an unprecedented recall.
Attorney Michael Louis Kelly of California has filed two suits against Toyota, and he says that his clients will demand cash. In the past, some class action lawsuits against auto manufacturers have been settled with coupons for use with future purchases. Kelly says that such coupons will not suffice in this case.
“The damages could be in the billions of dollars in the loss of value alone,” Kelly said in an interview. “I don’t think we’re talking about coupons under any circumstances.”
The value of Toyota vehicles has lost approximately 3 percent in resale value because of the recalls. Toyota’s market value dropped 19 percent from January 20 through February 5.
Class actions rarely go to trial and many are settled with coupons. For example, Ford settled a 2007 class action with $500 discounts to owners of Explorers with recalled tires. However, less than 1 percent of the eligible customers actually used the coupons to buy a new Ford.
“Toyota will do what they think they should do to fix these automobiles,” Kelly said, “but I don’t expect them to reimburse for the lost value of these cars.”
Toyota Brake Recall
The newest recall involves 437,000 hybrid cars to repair faulty brake systems. At least four consumer class action lawsuits seek damages related to faulty hybrid brake systems. More lawsuits are expected. Sales of SAI and Lexus HS250H sedans and Prius plug-in hybrids have been stopped.
On February 4, Toyota announced that it will have to pay an estimated $1.12 billion on warranty expenses and will lose $895 million in sales due to the recall. Fortunately for Toyota, they also have about $23 billion in cash. They probably won’t be filing for bankruptcy any time soon. But things are not looking good for the auto giant.
Toyota investors have filed their own class action lawsuit, claiming that Toyota made “materially false and misleading statements” about the sudden acceleration problem, which caused stocks to trade at inflated levels before the big recall announcement on January 21, 2010.
Law professor Carl Tobias of the University of Richmond points out the personal injury and wrongful death lawsuits will cost Toyota much more than the defective product cases.
“It’s important to distinguish the personal injury cases from the product disappointment or lemon cases,” said Tobis. “The latter are worth a lot less, in terms of payment.”
Have you or a loved one been injured by a defective automobile? If so, call an experienced Georgia personal injury lawyer immediately. Call MLN Law at 404-531-9700 to schedule a free consultation.
Labels: Toyota recall
Honda has announced a recall of 646,000 Honda Fit and Honda Jazz cars, including 140,000 Honda Fit cars in the United States. The recall is because of a faulty window switch that poses a fire hazard. Last year a child died after the faulty window switch caused a fire in the car.
The Honda recall comes on the heels of two major Toyota recalls due to an accelerator problem, and the recalls have Japanese automakers and investors worried.
Japanese automobiles have gained a reputation for their reliability and safety, but this reputation is now being scrutinized. On the positive side for U.S. business, more consumers are returning to American made automobiles.
“The race to cost cuts and the competition between all brands is so fierce that even the mighty Japanese are doing things that are not as reliable as they were," said IHS Global Insight analyst Carlos Da Silva.
Honda was poised to benefit from the Toyota recall, but now Honda may see declining sales as well as it is grouped with Toyota. Toyota, by the way, is the world’s leading auto manufacturer. But the leading manufacturer has suspended sales and production in the U.S. Officials in Japan are worried that the recalls may cause all businesses in Japan to suffer.
Transportation secretary Ray LaHood recently said that all Toyota owners should stop driving their vehicles – then he quickly recanted his statement.
“What I meant to say or what I thought I said was, if you own one of these cars or if you're in doubt, take it to the dealer and they're going to fix it,” said LaHood.
There has been a great deal of consumer confusion over the two Toyota recalls. The most recent Toyota recall involves 2.3 million U.S. vehicles including the 2009-10 RAV4 crossovers, 2009-10 Corollas, 2009-10 Matrix hatchbacks, 2005-10 Avalons, 2007-10 Camrys, 2010 Highlander crossovers, 2007-10 Tundra pickups and 2008-10 Sequoia SUVs. The Toyota recall also extends to Europe and China. The total number of recalled Toyotas is at about 4.5 million. It could grow to include 8 million vehicles.
U.S. Congress has taken surprising steps in scrutinizing Toyota over the recall. House Energy and Commerce Committee Chairman Henry Waxman said, “Like many consumers, I am concerned by the seriousness and scope of Toyota’s recent recall announcements.”
Meanwhile, investors and citizens in Japan are worried that these recalls may negatively affect their nation’s economy.
"Toyota has a very close tie with its hand-picked suppliers. It's like a parent in a big family, and the children actually depend on Toyota for a living," said Kevin Chen of Gasgoo.com. "If Toyota gets the flu, its suppliers will also be sneezing."
If you or a loved one have been injured by a recalled or defective product, contact a Georgia personal injury lawyer immediately. You may be entitled to compensation. Call MLN Law at 404-531-9700 to schedule a free consultation.
The Honda recall comes on the heels of two major Toyota recalls due to an accelerator problem, and the recalls have Japanese automakers and investors worried.
Japanese automobiles have gained a reputation for their reliability and safety, but this reputation is now being scrutinized. On the positive side for U.S. business, more consumers are returning to American made automobiles.
“The race to cost cuts and the competition between all brands is so fierce that even the mighty Japanese are doing things that are not as reliable as they were," said IHS Global Insight analyst Carlos Da Silva.
Honda was poised to benefit from the Toyota recall, but now Honda may see declining sales as well as it is grouped with Toyota. Toyota, by the way, is the world’s leading auto manufacturer. But the leading manufacturer has suspended sales and production in the U.S. Officials in Japan are worried that the recalls may cause all businesses in Japan to suffer.
Transportation secretary Ray LaHood recently said that all Toyota owners should stop driving their vehicles – then he quickly recanted his statement.
“What I meant to say or what I thought I said was, if you own one of these cars or if you're in doubt, take it to the dealer and they're going to fix it,” said LaHood.
There has been a great deal of consumer confusion over the two Toyota recalls. The most recent Toyota recall involves 2.3 million U.S. vehicles including the 2009-10 RAV4 crossovers, 2009-10 Corollas, 2009-10 Matrix hatchbacks, 2005-10 Avalons, 2007-10 Camrys, 2010 Highlander crossovers, 2007-10 Tundra pickups and 2008-10 Sequoia SUVs. The Toyota recall also extends to Europe and China. The total number of recalled Toyotas is at about 4.5 million. It could grow to include 8 million vehicles.
U.S. Congress has taken surprising steps in scrutinizing Toyota over the recall. House Energy and Commerce Committee Chairman Henry Waxman said, “Like many consumers, I am concerned by the seriousness and scope of Toyota’s recent recall announcements.”
Meanwhile, investors and citizens in Japan are worried that these recalls may negatively affect their nation’s economy.
"Toyota has a very close tie with its hand-picked suppliers. It's like a parent in a big family, and the children actually depend on Toyota for a living," said Kevin Chen of Gasgoo.com. "If Toyota gets the flu, its suppliers will also be sneezing."
If you or a loved one have been injured by a recalled or defective product, contact a Georgia personal injury lawyer immediately. You may be entitled to compensation. Call MLN Law at 404-531-9700 to schedule a free consultation.
Labels: Georgia personal injury lawyer, product recall, Toyota recall
Facing the recent massive recall of Toyotas, Atlanta Toyota owners find themselves at something of a loss.
Toyota has said that their cars are still fit to drive and those using them have no need to worry about the recall which has suspended production at six of their assembly plants, but that provides little relief for owners who have had no luck finding out when they will be able to bring their cars in for repairs, or even what those repairs might be when that time finally arrives.
"I called the dealership this morning after I heard about it and they told me they had not even received information or parts to repair what the problem is," said Joyce Stevenson, a Newnan resident who drives a 2007 Camry LE, V-6, 4-door sedan.
"Well, if it’s serious enough for them to stop selling them, then why aren’t they in a hurry to get the parts to fix them for people who have already bought one?"
Unanswered questions and worries over the recall are even starting to create division in some families as loyalists clash with those who want to get rid of the recalled cars and avoid Toyota in the future after learning of their widespread defect.
On the one hand, Toyota is expected to weather this recall well in the long run mostly on the grounds of their robust and loyal base of consumers. Many owners will stick with their Toyotas through the ups and downs brought by this recall and continue to buy Toyota automobiles in the future. Duncan Harle would like to be such a customer, but his wife falls on the other side of the argument. Sharon is firm in her stance that they get something else for their next car.
"We’re going to buy a new car," she said. "I can’t trust this car."
Duncan has been a Toyota owner longer than his wife, and calls them the best cars he's owned. For him, waiting and seeing how the recall and repairs continue seems like the best course of action.
"Can we bring the car in for a recall, and if we bring it in, what can they do for us?" Harle said. "I’ll give them a chance to fix it."
And in the short term, at least, economics may favor the loyalists. While dealers understand that these things do not permanently affect the ability to resell these cars once the proper repairs have been made, it may still make them cautious when making offers to sell or trade in the affected models. Private buyers will probably be even more conservative toward buying them, since they are less savvy of how much the cars will still be worth once repair, or because they might see the opportunity to get a better deal. Experts recommend that sellers hold onto their Toyotas at least a few more weeks and see what happens rather than accept a lower price.
If you've been injured by a defective product, contact an experienced Atlanta, GA personal injury lawyer immediately. Call MLN Law at 404-531-9700 to schedule a free consultation.
Toyota has said that their cars are still fit to drive and those using them have no need to worry about the recall which has suspended production at six of their assembly plants, but that provides little relief for owners who have had no luck finding out when they will be able to bring their cars in for repairs, or even what those repairs might be when that time finally arrives.
"I called the dealership this morning after I heard about it and they told me they had not even received information or parts to repair what the problem is," said Joyce Stevenson, a Newnan resident who drives a 2007 Camry LE, V-6, 4-door sedan.
"Well, if it’s serious enough for them to stop selling them, then why aren’t they in a hurry to get the parts to fix them for people who have already bought one?"
Unanswered questions and worries over the recall are even starting to create division in some families as loyalists clash with those who want to get rid of the recalled cars and avoid Toyota in the future after learning of their widespread defect.
On the one hand, Toyota is expected to weather this recall well in the long run mostly on the grounds of their robust and loyal base of consumers. Many owners will stick with their Toyotas through the ups and downs brought by this recall and continue to buy Toyota automobiles in the future. Duncan Harle would like to be such a customer, but his wife falls on the other side of the argument. Sharon is firm in her stance that they get something else for their next car.
"We’re going to buy a new car," she said. "I can’t trust this car."
Duncan has been a Toyota owner longer than his wife, and calls them the best cars he's owned. For him, waiting and seeing how the recall and repairs continue seems like the best course of action.
"Can we bring the car in for a recall, and if we bring it in, what can they do for us?" Harle said. "I’ll give them a chance to fix it."
And in the short term, at least, economics may favor the loyalists. While dealers understand that these things do not permanently affect the ability to resell these cars once the proper repairs have been made, it may still make them cautious when making offers to sell or trade in the affected models. Private buyers will probably be even more conservative toward buying them, since they are less savvy of how much the cars will still be worth once repair, or because they might see the opportunity to get a better deal. Experts recommend that sellers hold onto their Toyotas at least a few more weeks and see what happens rather than accept a lower price.
If you've been injured by a defective product, contact an experienced Atlanta, GA personal injury lawyer immediately. Call MLN Law at 404-531-9700 to schedule a free consultation.
Labels: product liability, product liability Atlanta, product recall, Toyota, Toyota Atlanta, Toyota recall, Toyota recall Atlanta, Toyota recall Georgia
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