2014 Toyota Avalon Xle Touring on 2040-cars

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Toyota's $1.6B unintended acceleration settlement approved

Toyota is now one step closer to putting its unintended acceleration woes behind it as it has received approval from the US District Court for the Central District of California to settle loss-of-value claims to vehicles associated with the 2009-2010 recalls.
As we reported back in May, the Toyota settlement is worth $1.63 billion, which, according to Bloomberg, includes a payout of $757 million to affected owners, $227 million to attorneys and an additional $875 million for vehicle upgrades. (We did the math, too, and that totals $1.859 billion, but there is no justification for the discrepancy. Fuzzy math, eh?)
Based on the estimated 22.6 million vehicles said to be included in this suit, that would make the average payment about $33.49 per vehicle, but the article says that owners, lessees and even renters will receive varying amounts ranging from $9.74 up to as much as $10,000. This settlement does not affect suits filed for personal injury or wrongful death.

The ugly economics of green vehicles

It's fair to say that most consumers would prefer a green vehicle, one that has a lower impact on the environment and goes easy on costly fuel (in all senses of the term). The problem is that most people can't – or won't – pay the price premium or put up with the compromises today's green cars demand. We're not all "cashed-up greenies." In 2013, the average selling price of a new vehicle was $32,086. The truth is that most Americans can't afford a new car, green or not. In 2013, the average selling price of a new vehicle was $32,086. According to a recent Federal Reserve study, the median income for American families was $46,700 in 2013, a five-percent decline from $49,000 in 2010. While $32,000 for a car may not sound like a lot to some, it's about $630 a month financing for 48 months, assuming the buyer can come up with a $6,400 down payment. And that doesn't include gas, insurance, taxes, maintenance and all the rest. It's no wonder that a recent study showed that the average family could afford a new car in only one of 25 major US cities. AutoTrader conducted a recent survey of 1,900 millennials (those born between 1980 and 2000) about their new and used car buying habits. Isabelle Helms, AutoTrader's vice president of research, said millennials are "big on small" vehicles, which tend to be more affordable. Millennials also yearn for alternative-powered vehicles, but "they generally can't afford them." When it comes to the actual behavior of consumers, the operative word is "affordable," not "green." In 2012, US new car sales rose to 14.5 million. But according to Manheim Research, at 40.5 million units, used car sales were almost three times as great. While the days of the smoke-belching beater are mostly gone, it's a safe bet that the used cars are far less green in terms of gas mileage, emissions, new technology, etc., than new ones. Who Pays the Freight? Green cars, particularly alternative-fuel green cars, cost more than their conventional gas-powered siblings. A previous article discussed how escalating costs and limited utility drove me away from leasing a hydrogen fuel cell-powered Hyundai Tucson, which at $50,000, was nearly twice the cost of the equivalent gas-powered version. In Hyundai's defense, it's fair to ask who should pay the costs of developing and implementing new technology vehicles and the infrastructure to support them.

Toyota wants improved crash scores with midcycle facelifts

The performances of some Toyotas in the Insurance Institute for Highway Safety's (IIHS) regimen of crash tests leave something to be desired. Consider the small overlap frontal crash test: only six Toyota, Lexus and Scion vehicles have undergone the new test, yet all but one of them received a poor rating. Osama Nagata, CEO of Toyota Motor Engineering & Manufacturing North America Inc., says midcycle vehicle updates are in the works to address the safety issues brought to light by the IIHS test, Automotive News reports. He confirmed that the RAV4 is getting safety updates following its crash test performance last month, but he didn't name any other models.
All three Toyotas that were tested - 2013 RAV4, 2012-2013 Prius V, 2012-2013 Camry - received poor ratings. The 2007-2012 Lexus ES 350 and 2006-2013 IS 250/350 also received poor ratings. The only other Toyota Motor Corp. vehicle to score better than poor is the 2014 Scion TC. It received an acceptable rating in the small overlap frontal crash test and is the only recent vehicle in Toyota's line-up to get the IIHS Top Safety Pick+ rating.
The small overlap front crash test measures the safety of a car when its front left corner is strikes an object during an accident, bypassing traditional crumple zones, which deform in a way to protect passengers. In 2009, automakers were alerted to the forthcoming addition of the test, which was first implemented last year, IIHS spokesman Russ Rader says. They responded with differing intensity, he says, pointing out that Subaru and Honda started incorporating design changes early on so their cars would perform well in the tests.