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Toyota sudden acceleration class action may cover 22 million owners

A total of 22.6 million current and former Toyota owners have been sent notices that they may be eligible to receive compensation from the automaker for damages related to the unintended acceleration fiasco that has dominated headlines in 2009 and 2010. The total payout may be as high as $1.63 billion, according to The Detroit News.
Steve Berman, a lawyer for the owners, calls the potential deal "a landmark, if not a record, settlement in automobile defects class action litigation in the United States." Still, there's some debate about whether or not Toyota's proposed settlement is fair, as it includes $30 million for safety research and driver education programs - in other words, Toyota seems to be suggesting that drivers need more education on how to drive their correctly working and fully functional vehicles. For those keeping track, Toyota would also be paying lawyer fees of $200 million.
A US District Judge in California is scheduled to hold a so-called "fairness hearing" on June 14 that could decide the fate of this particular settlement. Further courtroom wrangling will be required to hash out any wrongful death suits levied against Toyota stemming from unintended acceleration claims, as those are not part of this class-action suit.

Local production could improve Toyota Prius' fortunes in China

The Toyota Prius is the world's most popular hybrid vehicle, but it may take domestic production capabilities for the model to achieve a high level of popularity in China. Japan-based Toyota is aiming to produce an increasing percentage of Prius components in China in order to bring down its price there, Bloomberg News reports. Eventually, the goal is to make all Priuses sold in China in that country in order to avoid the steep 25-percent import tariff. As it is, Toyota sold just 1,400 Prius vehicles in China last year, compared to about 234,000 in the US and 315,000 worldwide. Hindering sales is the fact that the Prius costs about as much as an entry-level Audi in China, where Volkswagen is the country's best-selling automaker. Toyota has been selling the Prius in China for almost a decade but may soon find local sources for the batteries and other hybrid parts for the Prius and Camry Hybrid, Bloomberg says, citing comment from Hiroji Onishi, Toyota's China chief, at the Beijing Auto Show. Part of the problem is that the Chinese government provides less than $500 worth of subsidies for each hybrid sold, compared to about $9,600 for an electric vehicle. While that subsidy may rise as China municipalities take on the country's growing pollution problems, there's lingering concern over spurring sales of a car that's made by competing Japan. Toyota starting making some of its Prius vehicles in China in 2005 but halted production on the second-generation version of the hybrid four years later.

Toyota maintains world's largest automaker crown, GM and VW close behind

Toyota still holds the title of World's Largest Automaker. The Japanese automaker ceded the claim to General Motors in 2011 following a series of natural and man-made disasters that stifled production in Asia. Production is back up to full speed and, coupled with the introduction of a new Camry midsize sedan, Toyota retook the title in 2012 and has so far been able to keep it by selling 2.43 million vehicles in the first quarter of 2013.
The race is still tight - General Motors reports sales of 2.36 million vehicles, earning it the second spot globally with Volkswagen's 2.27 million sales nabbing the German automaker third place. It's not all smooth sailing for Toyota, either, as the brand's first-quarter figures were down 2.2 percent when compared to last year. GM posted a 3.6-percent gain and VW managed a 5.1-percent gain over the same period.
Sales in China may be a deciding factor as to which automaker performs best in 2013. Toyota's figures were down 13 percent in China. Meanwhile, GM and VW are continuing their upward trajectories in the crucial Chinese market.