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Legal approach in $1.2 billion Toyota settlement could impact handling of GM recall cases

In the past, if an automaker did something wrong, they were usually prosecuted by the US government through something called the TREAD Act. Short for Transportation Recall Enhancement, Accountability and Documentation Act, it basically requires automakers to report recalls in other countries, along with any and all serious injuries or deaths, to the National Highway Traffic Safety Administration.
Failing to report or attempting to conceal anything when there's been a death or serious injury constitutes a criminal liability. The idea is that this setup puts the onus on manufacturers to keep NHTSA apprised of safety related issues before they become a problem in the US, thereby allowing the regulator to better protect consumers.
In theory, it sounds like a relatively airtight set of rules for dealing with misbehaving automakers. That didn't stop the US Department of Justice from ignoring TREAD in its prosecution of Toyota's handling of the unintended acceleration recall, though. The result of this new approach, which charged Toyota with wire fraud, was a $1.2 billion settlement. Now, the wire-fraud approach could be used for the expected case between the US government and General Motors, based on the statements of Attorney General Eric Holder, who specifically mentioned "similarly situated companies" when discussing Toyota.

Toyota has two all-new 8-passenger SUVs in the works, and one's a Lexus

Toyota announced yesterday that its Princeton, Indiana, manufacturing plant is getting a big $803 million infusion of cash. The reason? Toyota casually dropped that it will soon build “two all-new, three-row SUVs” there. TheyÂ’ll be “designed with the active Gen Y American Family in mind,” which is another way of saying that Toyota is targeting Millennials. In case you missed it, Millennials are in their late 20s and 30s now! That means they have growing families and need more space to put them. Both new SUVs will seat up to eight passengers. The other big reveal is that both will be electrified. WeÂ’re going to assume that means theyÂ’ll be regular hybrids in ToyotaÂ’s case, though thereÂ’s every possibility for a PHEV “Prime” version, too. Both will have semi-automated driving systems, advanced enough that they will “allow for hands-free driving in certain conditions.” Plus, there will be a remote parking system that allows “the driver to park and unpark outside the vehicle using a smartphone.” The last nugget of tech Toyota is sharing with us is that both will use a new “digital key” that turns your smartphone into a quasi key and allows you to share it digitally with others. Another bit of information concerning these two is that one will be a Toyota, and the other will be a Lexus. What these two models will be named is not yet clear. Seeing “three-row SUV,” our minds instantly go to Sequoia. That model is as old as it gets these days, and is deeply in need of a redesign — the current generation launched all the way back in 2008. However, Toyota does not explicitly say that this news pertains to the next-gen Sequoia. In fact, previous reports of the Sequoia shifting its production location to San Antonio lead us to believe that this news has absolutely nothing to do with a potential next generation of the SUV. Coincidentally, the Sequoia is currently built at the Princeton, Indiana, plant thatÂ’s getting this investment — that official switchover to Texas is reported to happen sometime in 2022.  ToyotaÂ’s language in this press release, plus the knowledge that Sequoia is leaving Indiana, all indicates that these two three-row SUVs might not be rough-and-tumble body-on-frame off-roaders. TheyÂ’re likely going to be plenty capable (hitting that “active lifestyle” market), but the focus toward families suggests that comfort could be paramount.

2014 Toyota Highlander recalled over seatbelt anchors

Toyota has announced a small recall of its redesigned, 2014 Highlander over issues with one of its seat belts. The affected vehicles, which were built from November 20, 2013 to January 18, 2014, could have a seatbelt assembly in the middle seat of the third row that wasn't properly secured to a floor anchorage at the factory.
In total, 7,067 of the new Highlanders are included in the recall, which was discovered not after a crash, but during a post-build inspection at the factory. It's unclear if there have been any injuries as a result of the faulty seat belts.
Toyota is set to inform owners of the affected vehicles as well as dealers with the recalled Highlander models in their inventory. Naturally, repairs will be performed free of charge. For the full bulletin form the National Highway Traffic Safety Administration, scroll down.