Toyota may be required to reimburse consumers more than $2 billion after it was discovered that 260,000 Australians were impacted by faulty vehicles.
Customers who purchased a Prado, HiLux, or Fortuner from the Japanese automaker between 2015 and 2020 may be entitled for reimbursement.
Drivers reported that their brand-new automobiles were producing foul-smelling white smoke and exhaust as a result of defective diesel particle filters.
They also claimed that the car required frequent inspections, service, and repairs, and that it cost drivers more money owing to higher fuel consumption.
Toyota owners will get the anticipated drop in value of each car at the time of sale, which is 17.5% of the average retail price, plus an extra 10% for excess GST.
Owners are eligible if they purchased a diesel Toyota Prado, HiLux, or Fortuner between October 1, 2015, and April 23, 2020, and did not sell it.
In 2019, the Australian law firm Gilbert + Tobin filed a class action lawsuit against the manufacturer on behalf of the owners of the faulty units.
In April, the Federal Court of Australia decided against Toyota, saying the company participated in'misleading' marketing practices.
On Monday, the legal firm will begin contacting potential owners by phone, text message, and mail to ask them to register their interest in receiving thousands of dollars in compensation.
Ken Williams, the class action's lead applicant, has already been granted $18,000 in compensation for the defective Prado he purchased in 2016.
Less than a year later, the Queensland parent realized he had been duped.
While he was parked at a set of traffic lights, foul-smelling white smoke began pouring from the vehicle, frightening him and his small children.
Mr Williams told News Corp that he had been to the business 12 times after the 'horrendous' incident and had yet to see any progress.
'Having the judgment in my favour was good for me but also for hundreds of thousands of other people to see they can come forward and be compensated for all the pain and suffering,' he said of the Federal Court judgement.
Gilbert + Tobin partner Matt Mackenzie said the class action as "important" since the Federal Court is seeking to award damages on an aggregate basis.
The previous order of this sort was issued in 1998, when the Australian Competition and Consumer Commission initiated proceedings.
The ultimate amount of damages to be paid by Toyota has yet to be determined and will be determined by the number of drivers who join the class action.
According to estimates, the firm will have to pay more than $2 billion.
Owners who register for compensation and are found to be eligible will be compensated through a court-supervised distribution process.
Toyota lodged an appeal in the Federal Court of Australia, questioning the 'factual and legal basis for the award of damages'.
The manufacturer apologised to affected customers and said it was committed to assisting drivers with faulty diesel particulate filters.
'At the same time, we understand some customers have experienced inconvenience and discomfort from this issue. For this we apologise,' it said.
'We have worked continuously since becoming aware of DPF concerns on an effective resolution for affected customers.
'At every step, we have implemented customer focused and technically grounded remedies to resolve customers' concerns.'