Hundreds of thousands of Australians who were sold defective Toyota vehicles will be able to apply for compensation from today.
The court found the defect in Toyota HiLux, Prado and Fortuner vehicles led to a 17.5 per cent reduction in their value when sold. Photo: AFP
It comes after a Federal Court judgement handed down in April that found more than 260,000 Toyota vehicles were defective when sold.
The court found Toyota HiLux, Prado and Fortuner vehicles sold between October 1, 2015 and April 23, 2020 were sold with faulty diesel particulate filters (DPF).
Lawyers alleged the faulty filters decreased fuel efficiency, caused foul-smelling emissions and increased the wear and tear on engines.
The court found the defect led to a 17.5 per cent reduction in the value of the affected vehicles at the time they were sold.
It also found Toyota had engaged in misleading or deceptive conduct in marketing and selling the cars.
Partner with law firm Gilbert + Tobin Matt Mackenzie said the Federal Court's decision was significant and could leave Toyota footing a historically large bill.
"It's one of the few instances of the Federal Court exercising its power to award aggregate damage," McKenzie said.
An estimated 260,000 drivers in Australia purchased defective Toyota HiLux, Prado and Fortuner vehicles in the time period.
With an expected average compensation payout of A$10,500 per vehicle, Toyota could be facing a total compensation bill of more than A$2.7 billion.
"It will depend on how many group members register their interest," McKenzie said.
Potential delay on payouts
Toyota has committed to opposing the Federal Court's decision, stating in a press release it would lodge an appeal.
"Toyota's appeal includes challenges to the factual and legal basis for the award of damages, particularly in circumstances where many of the group members did not experience the DPF issue," the statement read.
Toyota also stated it would continue to offer free-of-charge repairs to any vehicle owners affected by the DPF issue.
The ABC reached out to Toyota for comment.
McKenzie said while his firm was committed to defending the appeal, compensation could be delayed by the legal action.
"There won't be any payouts until that appeal has been determined," he said.
"It turns on the availability of the parties and of the full court, but it's not unexpected for that to take somewhere in the order of 12 months."
Toyota HiLux, Prado and Fortuner owners wanting to register their interest to receive compensation under the judgement could do so from 10am on 20 June through an online portal.
- ABC