Report: Dana coughs up $25M to Toyota over rusty Tacoma frames

1998 Toyota Tacoma

When an automaker is forced to issue a recall, the defective part or feature is generally the fault of the automaker or of an OEM supplier it contracted to. In the case of the Toyota Tacoma – part of a 110,000-unit recall in 2009 – the problem appears to have been traced back to the supplier. And now the supplier is forced to pay for its mistakes.

The company in question, according to reports, is Dana, the Ohio-based OEM contractor supplying (among other components) axles and driveshafts for automobiles, commercial trucks and heavy equipment. In this case, it supplied the frames for the Tacoma pickup which were found to rust when exposed to road salt.

Although in 2010 Dana sold the plant that manufactures the frame to Mexican conglomerate Grupo Porza's Metalsa subsidiary, since the component in question was built prior to the sale (from 1995 to 2000), Dana has reportedly been forced to shell out $25 million to Toyota over the issue.

[Source: Reuters]

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