Court Upholds Damage Award Against Toyota

The Oregon Supreme Court unanimously upheld a $7.65-million damage award against Toyota Motor Corp. for defective design of its 4-Runner sport-utility vehicle. Linda McCathern, paralyzed from the neck down in a 1995 accident, had claimed that faulty design caused her vehicle to roll over. Toyota officials did not immediately respond to calls seeking comment. A Multnomah County Circuit Court jury awarded $5.4 million in economic damages and $2.25 million in noneconomic damages for pain and suffering.

Separately, Toyota said it created a unit to sell cars in Mexico for the first time. The auto maker said it is preparing a Mexican sales and service network in anticipation of relaxed duties coming in January 2004 under the North American Free Trade Agreement on cars built in the U.S. and Canada.