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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 asking NHTSA for waiver on 206K vehicles

Toyota has filed a petition with the National Highway Traffic Safety Administration asking for a waiver to avoid recalling about 206,271 2012-2014 Camry, Avalon, Corolla, Sienna, Tundra and Tacoma vehicles, some of its most popular models. The affected vehicles contain seat heaters that might not meet government flammability standards. Toyota says in the waiver that "the chance of fire or flame induced by a malfunctioning seat heater is essentially zero," according to The Detroit News. The automaker notes the part makes up less than one percent of the seat's weight.
Initial reports of the problem arose in late January when Toyota issued a stop-sale order for 2013 and 2014 model year versions of those vehicles. The automaker says that there have no been reports of fires or injuries in the affected cars, and the problem was discovered during testing by the South Korean government, according to The Detroit News.
We've reached out to Toyota for comment on this development and are awaiting a reply. We'll update this post if and when we hear back.

Toyota 86 and Subaru BRZ successor canceled?

Rumors indicate that the Toyota 86 is done for. Japanese Nostalgic Car is quoting Japanese sources as saying Toyota and Subaru have parted ways regarding the 86 and that the current car's replacement is off the table. According to JNC, the Japanese magazine Best Car is readying a report that the 86/BRZ successor has been canceled. JNC also considers the fact that in Japan, there will be a four-cylinder, 197-horsepower version of the new Supra, ready to continue where the 86 will leave the market. Back in 2016 the automaker seemingly confirmed that a replacement for the rear-drive car was under development, but plans can change and with a cheaper Supra version for sale in markets outside the U.S., we have to wonder if the 86 replacement has been shelved. The 86, while balanced, has only received mild enhancements and not a lot of extra power during its near-decade long time on the market, and it isn't such a strong seller that it would necessarily merit the effort of Toyota developing a successor on its own, particularly without the help of a partner like Subaru or BMW. At the same time, Autocar quotes Toyota boss Akio Toyoda on the Supra: "At the end of the day, is there anything better than a tight rear-wheel-drive sports car? I hope this won't be the last Toyota sports car you see from us in the future." While that is far from a solid statement of Toyota's future intent, it paves the way to offerings below the Supra, and shows how much the company boss cares about driver involvement. There is a distinct possibility that the company will re-introduce the MR2 as an electrified, rear-drive sports car – which could still be a joint venture with Subaru, as Japanese Nostalgic Car theorizes. Whatever's in the pipeline – and we hope there is something in the pipeline – it seems Toyota's heart is in the right place: driving the rear wheels. Related Video: