Toyota Motor has proposed to pay US$4.3bn to settle a US federal court case brought by owners of its pickup trucks and SUVs sold in the US between 2005 and 2010.
The plaintiffs claimed the vehicles had inadequate rust protection, making their chassis frames prone to corrosion that could threaten structural integrity.
Toyota's settlement proposal covers around 1.5m Tacoma and Tundra pickup trucks and Sequoia SUVs but the company admits no liability or wrong-doing.
The attorneys of the plaintiffs claimed that each vehicle chassis frame costs $15,000 to replace while each vehicle inspection would cost a further US$60, or US$90m in total.
As part of the settlement, Toyota said it will inspect all affected vehicles for a period of 12 years from first purchase to determine whether the frames need replacing and also has offered to reimburse owners who already have had to replace chassis frames.