Boston, MA, 03/21/2014 – Toyota Motor Corp (ADR) (NYSE:TM) has never found it so rough .In the recent past the company has been facing litigation by its customers related to serious safety issues in its vehicles . As if this was not enough, there is now enough proof that the company has actually sat on safety issues and overlooked safety norms that have lead to accidents and what is more deaths .
Pay up time for Toyota
Toyota has been imposed a criminal penalty of $1.2 billion as pay up against its charges of not attending to safety issues in its cars which led to accidents. Toyota not only had to recall millions of vehicles which are said to be unsafe but the company also had to admit that it chose to overlook the fact that there was a vital safety issue with its vehicles.
Toyota vehicles are reported to have a design flaw which leads to unintended acceleration leading to accidents.
Toyota has also accepted the fact that it has made attempts to mislead consumers by proclaiming its vehicles as safe even when it knew that there was a serious problem with them.
The company has also agreed to settle multiple lawsuits filed by scores of consumers who have been affected by the carmakers issues.
The total money being shelled out by Toyota as settlements is enormous and amounts to nearly $3 billion. But even as the company is expected to post profits for this year, there remains no doubt that the car makers’ reputation is tarnished. Having safety issues is one thing. Blatantly lying about it takes the act to a totally unacceptable low level of corporate behavior.
Whether Toyota Motor Corp (ADR) (NYSE:TM) turnaround this darkest corner in its corporate history remains to be seen.