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Toyota shares rise on smaller-than-expected settlement news

Posted Dec 28th 2012 7:57AM

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Following news that Toyota has proposed a massive settlement to address the owners of vehicles effected by the unintended acceleration recall, shares for the automaker are up 2.6 per cent. Over the course of this year, Toyota's stock has jumped 51.7 per cent.

"My initiate reaction would be 'that's it'... US$1 billion charge that covers recalls and everything else and you are looking at a US$250 million compensation fund, that's nothing," said a senior trader at a foreign brokerage to Automotive News. This settlement has been set aside to cover class-action lawsuits from 16 million owners of Toyota, Lexus and Scion vehicles and is separate from other impending lawsuits – including one consumer protection suit in California and another unfair-business-practices case brought on by 28 attorneys general.

In other positive news for investors, the Japanese yen has weakened compared to the US dollar. That likely means improved financial performance from the big Japanese automakers, the largest of which is Toyota.






Toyota Agrees to Pay More Than $1 Billion to Settle Suits

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Economist_101

Holly frig .. 16 million .. let me say that again .. 16 million .. loyal Toyota owners sued Toyota .. wow you don't see them on the blogs or media (or apparently buying Consumers Reports). That seems like incredible damage control. How could they suppress that to to the point where most people think they are the most perfect company.

December 29 2012 at 3:12 AM Report abuse rate up rate down Reply