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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.

Subprime financing on the rise in new car sales, leasing too

We all remember the financial crisis that began several years back. At its core was a splurge of subprime lending for housing loans. The housing bubble burst, triggering a collapse of the mortgage-backed securities market. Apparently, those types of loans still exist in the automotive industry, and the market share for these types of "nonprime, subprime, and deep subprime," loans has grown 13.6 percent compared to the third quarter a year ago.
According to an Automotive News report, high-risk lending expanded to 24.8 percent of total loans in Q3, up from 21.9 percent for this time last year. As this level increased, average credit scores of borrowers dropped to 755, down from 763 a year ago. In that time, the average financing amount increased $90 per vehicle, to $25,963.
At 818, Volvo maintains the highest per-owner credit score, while Mitsubishi has the lowest, at 694. The highest rate of borrowers was at Toyota, with 14 percent of the market, followed by Ford with 13.1 percent and Chevrolet at 11.1.

Next-gen Toyota Tacoma to debut at Detroit Auto Show

Toyota's confirmation comes on the heels of General Motors' successful launch of its own midsize pickups. The next generation of the Toyota Tacoma pickup truck will be revealed in January at the Detroit Auto Show, a top executive confirmed Thursday. Bob Carter, senior vice president of automotive operations for Toyota, offered no other details, but the new version of the pickup is expected to have significant upgrades compared with the aging model on sale now. Our spy shooters caught a prototype testing this summer, and rumors of the new generation have been swirling for months. We've also previously reported that Toyota is planning to ramp up production next April at a factory in Mexico that builds the Tacoma. Toyota's confirmation comes on the heels of General Motors' successful launch of its own midsize pickups, the Chevrolet Colorado and GMC Canyon, which have garnered awards, positive reviews and solid sales since they arrived in showrooms this fall. It's unclear how large the new Tacoma will be, especially considering that the Canyon and Colorado flirt with fullsize territory. The Tacoma was last updated in 2012, and the segment has changed dramatically since then with the addition of the GM trucks. Another Tacoma competitor, Honda's aging Ridgeline, is also expected to re-launch in 2015, which would leave the Nissan Frontier as the oldest truck in the field. Tacoma sales have slipped 4.1 percent to 140,757 units this year, though they posted a 3.3-percent gain in November. Meanwhile, Carter also said Lexus will reveal two performance vehicles, though he didn't elaborate. "I'll leave it at that, but I promise you'll enjoy it," he said coyly. Lexus just showed the LF-C2 convertible concept at the Los Angeles Auto Show.