Toyota Faces Class Action Lawsuit for Alleged Monopolization of Hydrogen Fuel Market
Toyota is currently the subject of a class action lawsuit that accuses the automaker of engaging in anticompetitive practices to monopolize the hydrogen fuel market for cars. The lawsuit alleges that Toyota tied owners of its hydrogen-powered Mirai vehicles to a single supplier, First Element, by preventing other hydrogen suppliers from entering the market. Additionally, the lawsuit claims that the poor state of First Element fueling stations resulted in Toyota breaching the warranty terms of the Mirai.
Background of the Lawsuit
The lawsuit, filed by a group of California taxpayers, centers around a clean energy hydrogen fuel station built in 2010 by the California State University, Los Angeles, with a state government grant. The suit alleges that Toyota retroactively imposed stringent standards on the facility, rendering it unable to operate despite meeting all other state-mandated regulations. The plaintiffs argue that Toyota used its influence to remove the station from the Hydrogen Fuel Cell Partnership website, effectively blocking it from serving the public. This action not only stifled competition but also resulted in the misuse of taxpayers’ money.
Claims by Mirai Owners
Last month, Mirai owners filed a separate lawsuit against Toyota, accusing the automaker of making misleading claims about the car’s usability. The plaintiffs cited the scarcity of operational hydrogen stations and the soaring cost of hydrogen fuel, which has increased by 200% in recent years. They also claimed that the promised five years of free fuel, supported by a $15,000 fuel card provided by Toyota, fell significantly short of expectations. Furthermore, the lawsuit alleges that the advertised range of the Mirai Limited and XLE models, 357 miles (575 km) and 402 miles (647 km) respectively, is unrealistic, with the actual range often being 100 miles (160 km) lower. These factors contributed to the rapid depreciation of the Mirai’s value, making it worth only 19% of its original price after five years.
Toyota’s alleged monopolization of the hydrogen fuel market and the subsequent consequences faced by Mirai owners have sparked legal action and raised concerns about fair competition and consumer protection.
