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U.S. and Toyota Reach Settlement Over Safety Problems Disclosure

The U.S. has reached a $1.2 billion settlement with Toyota Motor Corp., concluding a four-year criminal investigation into the Japanese automaker's disclosure of safety problems, according to a person close to the investigation. Attorney General Eric Holder, Transportation Secretary Anthony Foxx and U.S. Attorney for the Southern District of New York, Preet Bharara, were announcing the settlement Wednesday morning, said the official, who spoke on condition of anonymity because the official was not authorized to discuss the settlement on the record before the announcement. TOP 5Most Researched Green Cars On AOL Autos 2013 Honda Fit EV MSRP : $36,625 2014 Chevrolet Spark EV MSRP : $26,685 2012 Mitsubishi i-MiEV MSRP : $29,125 2012 Ford Focus Electric MSRP : $39,200 2012 Toyota Prius Plug-in MSRP : $32,000 In a statement early Wednesday, Toyota said it has "cooperated with the U.S. Attorney's office in this matter for more than four years" and had "made fundamental changes to become a more responsive and customer-focused organization, and we are committed to continued improvements." The criminal investigation focused on whether Toyota was forthright in reporting problems related to unintended acceleration troubles. Starting in 2009, Toyota issued massive recalls, mostly in the U.S., totaling more than 10 million vehicles for various problems including faulty brakes, gas pedals and floor mats. From 2010 through 2012, Toyota Motor Corp. paid fines totaling more than $66 million for delays in reporting unintended acceleration problems. The National Highway Traffic Safety Administration never found defects in electronics or software in Toyota cars, which had been targeted as a possible cause. The settlement continues a string of bad publicity for Toyota, which before the unintended acceleration cases had a bulletproof image of reliability. Since the cases surfaced, the company's brand image has been damaged and it has lost U.S. market share as competition has intensified. Last year, Toyota agreed to pay more than $1 billion to resolve hundreds of lawsuits claiming that owners of its cars suffered economic losses because of the recalls. But that settlement did not include wrongful death and injury lawsuits that have been consolidated in California state and federal courts. In December, Toyota filed court papers after a four-year legal battle saying that it's in settlement talks on nearly 400 U.S. lawsuits, but other cases aren't included in the talks.

Japan offering $20,000 incentives for hydrogen fuel cell vehicles

That tailwind Toyota may be feeling in Japan won't be from a stiff breeze off the northern Pacific Ocean. The Japanese automaker is getting ready to start selling its first production hydrogen fuel-cell vehicle in its native country next year. And the government is ponying up real big in incentives, Reuters says. The Japanese government will provide incentives worth about $20,000 per fuel-cell vehicle, Reuters reports, citing Prime Minister Shinzo Abe. That sort of government money will bring Toyota's first hydrogen fuel-cell vehicle to the customer at under $50,000. Just so we're clear, Japan's incentives for battery-electric vehicles top out at about $8,500. That sound you hear is a bunch of Nissan executives tearing their hair out. Last month, Toyota said the price for the fuel-cell sedan would be about $69,000 in Japan, and while the company hasn't priced it for US consumption, the word's out that the car may be in the $50,000 range stateside. The fuel-cell sedan, which has a full-tank range of about 300 miles, goes on sale in Japan next April and will start sales in Europe and the US next summer. Honda is also debuting its first production fuel-cell vehicle next year, so Toyota's got company among automakers who are probably all raising a glass and saying "kampai" to the Japanese government right about now.

IIHS: Drivers safer than passengers in frontal crash test

The Insurance Institute for Highway Safety introduced a small overlap frontal crash test in 2012 that replicates what happens when the front corner of a car impacts another object. In the test, vehicles travel at a speed of 40 mph toward a five-foot-tall barrier with 25 percent of the total width of the car striking the barrier on the driver side. One would assume that vehicles with good small overlap front ratings would protect the driver and the passenger equally. But a recent study from the IIHS proves that passengers aren't as protected as drivers. The IIHS conducted the test on seven small SUVs with good driver-side small overlap ratings and only one of the vehicles, the 2016 Hyundai Tucson, performed well enough to be given a good rating. The other SUVs performance ranged from poor to acceptable. After reviewing the results of the test, the IIHS is deliberating whether it should institute a passenger-side rating as part of its Top Safety Pick criteria. "This is an important aspect of occupant protection that needs more attention," states Becky Mueller, lead author of the study and an IIHS senior research engineer. "More than 1,600 right-front passengers died in frontal crashes in 2014." Since the small overlap front test was introduced, 13 automakers have made structural changes to 97 vehicles with roughly three-quarters earning a good rating after the adjustments. The IIHS' test for frontal ratings is completed with a dummy in the driver's seat and with a barrier overlapping the driver's side. Which makes sense, as passengers aren't always riding in a vehicle. "It's not surprising that automakers would focus their initial efforts to improve small overlap protection on the side of the vehicle that we conduct the tests on," states David Zuby, IIHS executive vice president and chief research officer. "In fact, we encouraged them to do that in the short term if it mean they could quickly make driver-side improvements to more vehicles. As time goes by, though, we would hope they ensure similar levels of protection on both sides." As the IIHS' test revealed, there's a massive difference in safety between the two front seats. Increase passenger safety, according to Mueller, would require automakers to strengthen the occupant compartment by using a different type of material or by making it thicker.