rentedmule

I came across this on another forum and thought some of you may be interested, hopefully it's not a repost. The link at the top is for the lawfirm that's dealing with the suit as far as i can tell



Source: Automotive News special email alert
Link: www.oilgelsettlement.com

Mark Rechtin - Automotive News - January 8, 2007 -

LOS ANGELES -- Toyota Motor Sales U.S.A. Inc. has quietly settled a class-action lawsuit that covers about 3.5 million Toyota and Lexus vehicles that may have been damaged by engine oil sludge.

Details of the settlement, which allows for third-party mediation of sludge claims rejected by Toyota, have been mailed to 7.5 million current and previous owners.

Critics contend Toyota has told customers and dealers too little about sludge issues. They say some customers took vehicles with dead engines to dealers who had little or no knowledge of the problem and often assumed it was the owners' fault.

Unhappy customers had no remedy other than hiring a lawyer to go after Toyota.

Under the agreement, owners whose claims have been denied by Toyota may submit them to a third-party mediator at no cost for binding arbitration.

"This settlement breathes life into claims that have been dead for years," said Gary Gambel, a lawyer for plaintiffs who sued Toyota. "This is not a settlement that gives a few dollars to everyone. The relief is exactly tied to the problems and damages that someone might have."

About 3.3 million Toyota vehicles are susceptible to oil sludge, which can cause thousands of dollars in damage and require replacement of the engine.

Sludge is gelled oil that fails to lubricate engine parts. It can lead to damage, often requiring a new engine at a cost that can exceed $10,000. Complaints about sludged engines have plagued several carmakers, but Toyota's troubles have been especially controversial in light of its reputation for vehicle quality.

The issue highlights a possible chink in the company's armor. Executives fear Toyota is growing too fast for its engineering resources. That could lead to quality snags and a tarnished reputation.

When a customer takes a sludge-caked engine to a dealership, there is usually a "clean-out" procedure. The head is pulled and a service technician tries try to steam out the sludge. If that doesn't work, the engine must be replaced.

Sludge can result from poor engine design; overly tight tolerances between moving parts; improper cooling; and poor maintenance by consumers.

Toyota insists the problem arises mainly when owners fail to change their oil frequently enough.

The agreement does not find Toyota at fault.

Damages that can be recovered include loss in value of the vehicle and incidental costs, such as rental cars. Past lawyers' fees, mental anguish and bodily injuries are not covered.

A Toyota spokesman said the agreement is not a defeat for the automaker.

"The settlement validates the customer support program we implemented four years ago," Xavier Dominicis said.

"The terms of the program remain unchanged. There always was a way for customers to appeal our decision."

Plaintiff lawyers disagree. They say Toyota failed to communicate the extent of the problem to its dealers and customers. Toyota's appeal process also meant hiring a lawyer, which many consumers could not afford. It costs nothing to file an appeal with Ates.

"The consumer only needs to show reasonable maintenance in terms of oil changes," Gambel said. "You don't need to prove where the sludge came from, or explain your driving habits. If you have oil sludge, Toyota pays" the consumer.

d0ubledown

good to know that toyota's making it right for those with legitimate claims. now if they can only do the same thing re: instances of some of the 05 tacoma's having cracked frames & blown rear R&P's...

da_bigg_wigg

It really does infuriate me when people mistreat their vehicle, and then claim its the fault of the car company for it falling apart on them. Treat it right, and it'll last you a long time. Simple as that. Don't try to tarnish reputations because you're a knob...

rentedmule

I agree with you but I don't think this one is all based on poor maintenance though. My girlfriend's family had a pile of sludge-related problems with their 3.0L camry and they were meticulous about maintenance and always had it done at the dealer. They even switched to full synthetic early on it didn't fix the problem, it just prolonged the intervals between issues. They faught with the dealer about it for years and eventually just sold the car out of frustration.

kmcc78240

Brian
I knew this over the Sienna, you can't get anything what about this statement.."Damages that can be recovered include loss in value of the vehicle and incidental costs, such as rental cars. Past lawyers' fees, mental anguish and bodily injuries are not covered."

Seems like that would cover you.

kmcc78240

I guess just seat and wait, I discovered this right before, Good Luck with it

da_bigg_wigg

Holy dyna, I must have struck a nerve there. Look, I was talking more about those who don't maintain their vehicles. Whether it is not changing their oil ever, driving around without an oil cap for a week (true story... sadly) or not even knowing that oil is something that needs to be changed, they get no sympathy from me when they call their vehicle a piece of crap because it broke down. On the other hand, no one is perfect, not even Toyota. The sludge issue is definitely something that needed to be addressed. Maybe now Toyota will learn from this whole debacle and improve. Maybe not. Who knows...

So long story short, I wasn't calling you a knob wabbit Sorry to hear about the bad luck...

littlerunner

lawsuit doesn't mean jack Sh**.Toyota has been repairing these vehicles for the past 3-4 yrs.Everyones talking like some lawyer made em do it-wrong.Theres no telling how many engines we've replaced on vehicles with well over 100k on.Just did on with 190k.Gave the guy a complete short block,timing belt,plugs wires.it was 100% when it left.Guess what he was out.Zero-zilch-nada.Heck he had even bought the car used,never spent a dime on service with Toyota.You guys say what you want but there is not another manufacturer in the world that would take care of things like that.And don't think for a moment others aren't having the same problems.If you don't think so,wake up Alice your in Wonderland.Get off the crak pipe while your at it.

rdharper

I've heard the symptom, but nothing about the cause.

What was the cause of the sludge problem? Does anyone know? :bounce2: :bounce2: :bounce2:

littlerunner

the majority we see is a lack of maintenance.However Toyota has never told us this or that is the problem.Longer maintenance intervals imo is part of the culprit.You know ya tell someone change the oil every 7500miles,maybe they 8000-10,000 miles actually.We tell everyone 3000 miles regardless waht Toyota says.Most do pretty good.But again like 7500,ya tell em 3000 in hopes they'll be in 4000-5000.Oh its just a little over,it won't hurt.Yeah right!
Anyway most we've done are cars that wern't taken care of to begin with.Let some guy thats serviced to the mile and have a problem at 190k guess what?Sorry about your luck.back to the cause-some of us believe it could be a breathability problem within the engine--maybe one day they'll tell for sure

1994runner

I agree with littlerunner that the recommended intervals is the problem. Toyota is saying 7500 between oil changes and Honda is saying 10000 on oil and 20000 on a filter. If they would have stuck to the universal 3000 normal oil change and 6000 synthetic the lawsuit wouldn't have won. Most people who purchase cars and trucks now that aren't mechanically inclined have the mentality that there is virtually no maintenance for 100000 miles

mt_goat

Here's some info on it:
http://www.yotarepair.com/Sludge_Zone.html

rdharper

Thanks Dale... and that not only makes sense, it might even be right!

Guess the only other thought is, I wonder why most have avoided the problem. Probably their maintenance procedures... ie: more regular maintenance and maybe the particular brand of oil. (don't mean to start more endless speculatioin on that as we all have favorite brands, and the long time to failure is difficult to relate to what brand you use, and how often you change it.)