Toyota ‘Gets Off Lightly’ with $1 Billion Settlement

Toyota ‘Gets Off Lightly’ with $1 Billion Settlement (YahooFinance)

The United States Justice Department has lowered a $1 billion boom on Toyota Motor Corp (TM) to end a four-year investigation into the beleaguered Japanese carmaker. While the $1 billion fine is one of the largest in history, it may end up being a bargain for TM in the long run. The $1 billion fine allows the company to avoid criminal charges regarding some of its models’ unintended acceleration. In addition to the fine, Toyota also will be held to court-imposed conditions for improving safety. Should it not follow these guidelines, the investigation could be reopened. And that could be a crushing blow to TM investors, who’ve already seen company shares drop from almost $140 in August to yesterday’s close at $109. What do you think? Is it a chance to buy the Toyota dip, or the beginning of an even bigger slide?

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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