Uh-oh! Toyota’s in trouble… The internationally acclaimed auto manufacturer could be forced to pay a class-action bill amounting to nearly $2 billion after a recent Federal Court judgement found thousands of owners could claim over $7000 each to compensate for alleged defects discovered in the vehicles sold by the company.

Justice Michael Lee found a whopping total of 264,170 customers, who purchased a car from the brand’s top-selling vehicle lines, were eligible for a payout.


The class-action alleged that the vehicle models Hilux, Fortuner and Prado which were sold between October 2015 and April 2020– specifically, cars with the 1GD-FTV or 2GD-FTV diesel engine, containing an allegedly faulty diesel particulate filter (or DPF) – increased fuel consumption and general wear and tear.

As a result, the unfortunate vehicle owners were left with a mountain of expenses. They had to shell out hundreds and thousands of dollars for an excessive amount of inspections, repairs, services, and in some cases, a loss of potential income for having to take time off work in an attempt to find a remedy for the defect.


Justice Michael Lee found each vehicle was worth 17.5 percent less than what the average customer paid, and customers were entitled to be reimbursed for that difference.

For the lead applicant of the class-action, Ken Williams, that is $7474.59. Mr Williams also convinced the judge to grant him $4725 in damages for lost income, and $992 in excess tax. All added up, he is entitled to over $13,000.

“I am thrilled with today’s judgment, particularly that the court has found that hundreds of thousands of ordinary Australian consumers who bought these vehicles are entitled to be awarded damages for the losses they suffered as a result.” he said in a statement.

If all the affected customers come together to claim their payouts, the bill for Toyota could hit over $2 billion.


At the trial, Toyota argued that they had done their best to sort out the issue.

“(Toyota) asserts it made it known to group members that they were able to have the defect repaired at no cost to them and group members who have not taken up that offer have behaved unreasonably such that they should not be compensated.” Justice Lee mentioned in the judgment.

The auto giant also added that they offered refunds and replacement vehicles to numerous customers.

However, Justice Lee concluded that the company was consciously misleading customers by continuing to market the vehicles as ‘acceptable quality’ even after discovering the defect.


"In short, by reason of the Core Defect, the Relevant Vehicles were worth less at the time of supply than they would have been worth if they were not defective," Justice Lee wrote.

"The conduct in marketing the vehicles as being of acceptable quality was misleading. TMCA also admits that it engaged in the omissions conduct, including failing to disclose the core defect and defect consequences to prospective purchasers.”

In response to the issue, a Toyota spokeswoman said: “We are in the process of reviewing the court's judgment,"

"At every step, we believe that we have implemented customer-focused and technically grounded remedies to resolve customers' concerns. Toyota will carefully consider the initial trial judgment before making any further comment."

Wondering if you’re eligible for a payout? You can access a full list of the affected vehicles in the class-action by clicking here.


Do you think this is a big win for the affected customers or is Toyota undeserving of a $2B class-action bill? Share your thoughts with us in the comments below, particularly if you have one of these models.

Watch news coverage of Toyota’s class-action bill below!