U.S. Expands Air Pollution Lawsuit Against Toyota

Toyota Motor Corp. and a U.S. unit were added to a lawsuit by U.S. regulators accusing the auto maker of violating clean-air rules in a case that carries potentially billions of dollars in fines.

The Justice Department this week filed suit against Japan’s largest auto maker and its Torrance-based subsidiary, Toyota Technical Center USA Inc. The suit alleges that computerized emission control systems in 2.2 million Toyota and Lexus models could pollute the air without the owners’ knowledge, in violation of the federal Clean Air Act, Toyota said.

In July, the Justice Department sued Toyota Motor Sales USA Inc., a subsidiary also based in Torrance, on the same charge, which carries as much as $55 billion in fines. The suit was expanded this week because the U.S. sales subsidiary wasn’t responsible for the design and approval process.

Toyota Technical Center, 80% owned by the Japanese parent company, manages research and development for the auto maker’s U.S.-built vehicles. Toyota is the fourth-largest auto maker in the U.S.

In addition to seeking a possible recall of the cars in question or additional warranties, the government is asking for penalties of as much as $27,500 per car, according to the suit.

Toyota’s American depositary receipts rose $1.69 to close at $93.25 on the New York Stock Exchange.