Toyota Motor Sales U.S.A. Inc. has settled a class-action lawsuit filed for owners of nearly 3.5 million Toyota and Lexus vehicles that may have experienced damage related to oil sludge. The problems have been evident in 1997 to 2002 vehicles with 1MZ-FE 3.0L V6 engines and 5S-FE 2.2L inline four-cylinder engines. Over 3,000 owners reported the problem by the fall of 2002, prompting Toyota to extend warranties to eight years and unlimited miles. Under the new agreement, owners have eight years plus 120 days from the original purchase date to file a complaint, and they may be able to recover repair and incidental costs and losses in vehicle value. Although critics claim affected engines have flaws that encourage sludge formation on "hot spots," such as near the top of the cylinder heads and near valves, Toyota has not admitted to a design defect. Eligible vehicles with signs of sludge can be taken to a Toyota or Lexus dealer, along with proof that "reasonable efforts" were made to maintain the vehicle.
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