Toyota ordered to pay 15.8 million dollars for defects in the PriusJuly 18, 2019
The litigation with one of the American dealerships ended not in favor of Toyota.
Car dealer Roger Hogan back in 2017 reported problems with overheating of the inverter in the Toyota Prius, which did not eliminate the 2014 review. However, the manufacturer, instead of solving problems, took measures against the dealer himself, limiting the supply of the best-selling models. In January 2018, he sued the company, estimating the loss of millions of dollars in lost profits.
On Monday, the trial, which lasted two months, was completed. The court ordered Toyota to pay $ 15.8 million to Roger Hogan, who owns one of the largest Toyota dealerships in Southern California, because the company did not comply with “good faith and honesty” under a contract with Hogan.
Toyota representatives said they did not agree with the court’s decision, as the company does not see a link between violations of integrity and honesty with vehicle safety issues.
Meanwhile, the court concluded that Toyota somehow concealed material facts from dealerships, interfered with them and caused them harm, but did not find evidence that the company acted with intent, so the manufacturer managed to avoid fraud charges, which significantly would increase the amount of the fine. It could amount to 100 million US dollars.
In addition, the court found that Roger Hogan acted in unscrupulous ways: the dealerships belonging to him used for profit, company blunders and extracted data from Toyota systems for this purpose, without forgetting to publicly condemn the brand. For this, the amount of compensation in his favor was reduced by 2.3 million US dollars.
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