Kobe Steel and Toyota Face US Class Action

A class action was filed in federal court, San Francisco, on March 6, alleging that Japanese companies Kobe Steel Ltd and Toyota Motor Corp. violated consumer protection laws and engaged in fraud by concealing the use of substandard metal components in vehicles. Such allegations have been made against Kobe for almost fifty years, but this is the first complaint issued by US consumers. Toyota had the duty to disclose defective vehicle components because it has marketed its automobiles as safe, functional and reliable, according to the lawsuit. Kobe supplies steel parts to car, plane and train manufacturers worldwide. It admitted last year to supplying products with falsified specifications to about 500 customers. Its CEO will step down to take responsibility for the scandal. According to the complaint, Toyota vehicles including Prius, Camry, Land Cruiser and Lexus have been manufactured with sub-standard steel, aluminum, and copper. In November, the U.S. National Highway Traffic Safety Administration ordered 29 automakers, including Toyota, to disclose the safety of any of their vehicles or engines containing products supplied by Kobe.