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    The Road to Tyranny by Don Jans

    Toyota May Face Warranty Claims Regarding Allegedly Rusty SUV Frames Manufactured by Dana Holding Corp

    Jonathan Sharp

    Toyota’s market capitalization hit 254 billion US dollars at the end of March 2021, according to an online portal that provides statistics on the global digital economy, industrial sectors, and consumer marketplaces. Its stock reached a high of about 163.37 US dollars in the fiscal year ending March 31, 2021. Toyota Motor Corporation has the second-largest market capitalization in the world, trailing only that of Tesla in terms of market capitalization. The business is one of the world’s biggest automakers and the market leader in terms of worldwide vehicle sales by manufacturers.

    While it’s a prolific automaker today, the Japanese manufacturer actually started as a textiles company in 1926, when founder Sakichi Toyoda began manufacturing automated looms. Almost a century later, Toyota Motor isn’t just among the biggest automakers in the world, it is also the largest company in Japan and the ninth-largest company in the world by revenue, as of December 2020. Despite a 10.5 percent drop in worldwide sales in 2020, Toyota nevertheless manufactured 9.5 million cars, making it the world’s biggest automotive brand.

    Despite the fact that they are highly acclaimed for their performance and practicality, some Toyota vehicle models are affected by a flaw that causes early rusting and corrosion. In August 2018, a formal complaint was filed with the National Highway Traffic Safety Administration (NHTSA) after Toyota allegedly refused to provide any support.

    Toyota, the Ninth-Largest Business in the World by Revenue, Putting Drivers at Risk of Serious Injury from Rusted Frames

    A class-action lawsuit regarding rusting of the frames and undercarriages on 2003-2009 Toyota 4Runners has been filed against Toyota Motor Corporation in South Carolina, in December 2018. The defect can create major driving hazards, compromising the safety of vehicle owners and passengers, as well as other drivers on the road.

    Inadequate treatment and coating of Toyota 4Runner frames during manufacturing can result in premature rusting, which can cause wheel alignment problems, suspension wear, and breakage of suspension components, as well as of engine mounts and body mounts. This can lead to potentially serious issues with the vehicle. In 2020, a similar class-action case was settled regarding excessive frame corrosion on 2005-2010 Tacoma midsize pickups, 2007-2008 Tundra full-size pickups, and 2005-2008 Sequoia large SUVs. The settlement was for over $3 billion in benefits to the class.

    Corrosion is rightly regarded as the most dangerous adversary to metals. If the metal surface is not protected, then it quickly collapses. This issue is also applicable to automobile bodywork. The paint coat protects, but it is insufficient. Moisture is one of a car’s most damaging natural enemies. It is capable of penetrating under the paint on the body, causing the metal to deteriorate. This is referred to as corrosion. There are many methods to protect cars from corrosion, one of which is galvanizing, which substantially extends its service life. Because this is neither the simplest or cheapest form of protection, producers use a variety of techniques to galvanizing. So that brings us back to Toyota.

     The Frames Were Made by the Same Company Using the Same Flawed Manufacturing Method

    Toyota initially experienced rust issues in their pickup vehicles between 1995 and 2000 with the Toyota Tacoma. The rust problems were from a batch of improperly, or lack thereof coated frames for rust proofing from Ohio-based Dana Holding Corporation. Severe corrosion of the frame rails, suspension components, air tanks, and fuel tanks, can be seen in many time-lapse videos on youtube.com. Despite winning a multi-million dollar case against them, Toyota is running a deficit since so many frames need to be replaced.
    Dana Corp. is best known for its rear axle assemblies and differentials. However, for the Tacoma model, Dana provided the frame that was found to rust excessively, causing Toyota to issue a recall on 110,000 pickups built during 1995-2000. This recall mostly impacted individuals who lived in severe winter climates and the rust issue was exacerbated by the usage of road salt.

    According to Reuters, Toyota was Dana Corp’s second-largest client in 2009, accounting for 6% of the company’s revenue, behind only Ford Motor Company’s 20% share. This $25 million payment was deducted from Dana’s fourth-quarter earnings, and while it appears to be a sizable sum, Dana reported $6.1 billion in revenue that year, implying that the $25 million fine is likely a small fraction of the money made off of Toyota over the course of their relationship.

    As Common with Tacomas and Tundras, the 4Runner Has Had Dangerous Rust-through Issues on Its Frame

    In response to a complaint indicating that a 4Runner owner reported the steering and suspension system had detached owing to significant corrosion on the frame, the National Highway Traffic Safety Administration (NHTSA) has been notified. According to numerous consumer reports, the rust develops during the first one to three years of ownership and is different from surface rust frequently found on metallic surfaces.

    The National Highway Traffic Safety Administration (NHTSA) has stated that it will either approve or reject the petition to investigate after examining over 520,000 Toyota 4Runners from the model year 2002 to 2006. Despite the fact that there has been no Toyota 4Runner frame recall, a class-action lawsuit has been filed on behalf of anyone who has experienced this issue. Gary Weinreich, the lead plaintiff in the suit filed in South Carolina, claims that his Toyota 4Runner rusted severely as a result of faulty rust prevention, rendering his vehicle unsafe to drive and a danger on the roads.

    At this point in time, there has been no Toyota 4Runner rusted frame recall but owners of Toyota 4Runners manufactured between 2003 and 2009, should be vigilant for any signs of undercarriage rust. If remaining unattended, the rust will ultimately break off, rendering the car undrivable.

    About the author:

    As the Director of Claims at Environmental Litigation Group P.C., Jonathan Sharp is dedicated to assisting injured people and communities in obtaining the financial compensation they are entitled from the parties liable. The law firm, founded in 1990 and located in Birmingham, Alabama, handles product liability and personal injury cases nationwide. Jonathan Sharp has been working along with the legal team for over 20 years, dedicating his time to helping people who experienced adverse health effects due to exposure to toxic chemicals in occupational settings.


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