Toyota reaches $150 million U.S. settlement over fuel pump recalls

Toyota Motor reached a settlement potentially worth $150 million to deal with U.S. class-action litigation tied to recalls of about 3.36 million Toyota and Lexus vehicles whose faulty fuel pumps could result in engines stalling.

The initial settlement was filed on Wednesday night in federal court in Brooklyn. It needs a judge’s approval.

The settlement covers owners and lessees of dozens of Toyota and Lexus vehicle models which were manufactured in the 2013 to 2020 model years and geared up with Denso low-pressure fuel pumps.

Drivers complained that defective pumps resulted in vehicles running rough, losing engine power, and stalling, particularly at low speeds.

Toyota has said problems were reported more regularly in the southern United States, where the weather is warmer.

Over 5.8 million vehicles globally were recalled in 2020 and 2021 over the defect.

Under the settlement, the automaker will extend warranties for the fuel pumps to 15 years or 150,000 miles, whichever comes first and offer drivers complimentary loaner vehicles and towing options for repairs.

Drivers may also look forward to reimbursement for prior repairs, including for loaner vehicles and towing.

The case is Cheng et al v Toyota Motor Corp et al, U.S. District Court, Eastern District of New York, No. 20-00629.