US automaker agrees to pay $1.3 billion for faulty auto parts
Automakers from Toyota to Nissan to Ford to Volkswagen to Mazda are in talks to resolve claims that they supplied faulty auto components to suppliers, a federal judge in Washington said Wednesday.
U.S. District Judge Alvin Hellerstein ruled that the government had failed to prove that any of the auto companies supplied faulty parts to their suppliers.
The government’s lawyers had argued that the automakers should have known they were liable for manufacturing defects.
A settlement would resolve claims by the automakers that they were not fully aware of the risks that some suppliers posed to their brands.
In doing so, the automakers would prevent their suppliers from selling defective parts to customers.
The companies, which represent about 80 percent of the U.
S auto industry, have already agreed to pay more than $1 billion for the damages they suffered from defective components.
They will also receive compensation from dealers and consumers.
The automakers say the settlement is a necessary step toward getting the auto industry back on track.
It will give the industry time to review and revise its supply chain practices.
The settlement, which is subject to court approval, would cover the entire auto supply chain from the car to the dealer, from the auto parts manufacturer to the consumer, and from the supplier to the customer, Hellerstein said.