Rusty Frames Leave Toyota on the Hook for Billions

Steph Willems
by Steph Willems

Rust, as Neil Young once said, never sleeps, and neither will Toyota — at least, not until it has fulfilled its 12-year promise to inspect and replace (if necessary) hundreds of thousands of corroded truck frames.

Toyota has agreed to pay up to $3.4 billion to appease owners of several previous-decade truck models who launched a class-action lawsuit against the company. Replacing those severely rusted frames won’t be an easy task, and there could be plenty of vehicles needing a completely new skeleton.

The settlement covers about 1.5 million Tacomas, Tundras and Sequoia vehicles that left the factory with insufficient rust protection. The corrosion is so bad, some vehicles could lose structural integrity.

Of the crop of iron oxide-friendly frames, the bulk of them rest underneath 2005 to 2010 Tacomas. The rest lurk below 2005 to 2008 Sequoias and 2007 to 2008 Tundras. As part of the settlement, the automaker must now check up on those frames for a period of 12 years after they first left the dealer lot.

Replacing a frame is a pricey, time-consuming process, so Toyota has set aside $15,000 for each affected vehicle, plus an extra $60 for regular inspections. According to a lawyer involved in the class action, Toyota mechanics should expect more than just a few frame-swaps in the coming years.

“Probably about 15 percent of the frames that get inspected will end up needing to be replaced,” Timothy Blood, co-counsel with Blood Hurst & O’Reardon in San Diego, told Automotive News. “There are a lot of steps to it. And it is labor-intensive.”

Going by that estimate, a total of 225,000 vehicles could see new frames. The original, insufficiently rustproofed frames were supplied by Dana Holding Corp. of Maumee, Ohio.

For a clearer idea of the replacement process, see the video below.

[Image: Toyota]

Steph Willems
Steph Willems

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  • Namesakeone Namesakeone on Nov 21, 2016

    An obvious, to me (and at least one other person, above) question: Why wouldn't Toyota simply buy back and scrap the older ones--which would certainly cost less than replacing the frame for $15,000?

    • See 2 previous
    • Scoutdude Scoutdude on Nov 22, 2016

      @psychoboy You are correct that the hourly rate that they pay for warranty will vary simply because of the different costs of doing business in different areas. As far as the parts mark up I bet this is different. For many warranty issues the dealer is using parts pulled from stock and expects to be compensated for his investment. For this the frames are ordered for specific vehicles and the dealer doesn't have money tied up in those parts. So I'm betting the aren't giving much of a margin to the dealer on those parts. The fact is that all the mfgs have different labor times for warranty work vs customer pays. The customer pay rate is for a tech that is working with one hand tied behind his back with a hangover so he doesn't want to use his air tools unless he has too. Warranty work is based on the assumption that the tech has done the job a couple of dozen times and knows all the shortcuts and exactly what tool combination is required for each and every fastener. There is no hard and fast rule but in general it is around 80%. However there are cases where the mfg really wants the issue to go away and they'll authorize a higher rate to ensure that customer pays take a sideline.

  • Kosmo Kosmo on Nov 22, 2016

    My now 81-year old dad had his older (year?) small Toyota p/u bought back several years ago due to frame rusting. He bought it used, drove it for several years, and Toyota's first offer was for a few bucks less than he paid, so he felt it was more than fair. Wish I remembered more details. Now I read about this fiasco, so I crawl under his 1998 Tacoma and there is a HUGE rust hole in the right front frame member. Toyota's response so far is that it's two years too late for them to care. I'll try running it a bit further up the chain of command and report back. Ideas welcome from the B&B!

  • Analoggrotto Hyundai is the greatest automotive innovator of the modern era, you can take my word for it.
  • MrIcky My maintenance costs are pretty high because I enjoy doing questionable things (when it is safe to do so of course). Tires and frequent oil changes seem a small price to pay.
  • MaintenanceCosts Dammit, my Highlander's two years too old.
  • Analoggrotto so what
  • Shipwright I wonder where Speedmaster is based. Oh Looky! it's China! who would have thought.
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