Toyota shares slide as carmaker agrees $1bn recall deal

<p>Shares in Toyota have slipped after the Japanese company agreed to a $1 billion recall deal.</p>

Shares in Toyota have fallen in Frankfurt this morning (December 27th) as the carmaker has agreed to pay around $1 billion (£680 million) in a settlement of hundreds of lawsuits from US drivers.

The deal would compensate owners for their own financial losses and for the cost of making safety changes to faulty autos manufactured by the famous Japanese company.

This is the latest in a line of blows for Toyota, which has recalled in excess of 14 million vehicles worldwide since 2009 for this single fault, which led to floor mats becoming trapped under the accelerator pedal.

US group vice-president Christopher Reynolds said the US recall deal was a "difficult decision" to come to, but he noted it is better for the firm's reputation if it draws a line under the matter in this way.

At 09:45 GMT, Toyota shares sank by 0.8 per cent on the Frankfurt Stock Exchange to €34.20 per unit.

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