Toyota faces $2 billion lawsuit in Australia following faulty diesel filters

Kiwi customers have complained of faulty diesel particulate filters (DPFs) found in one of the country's most popular vehicles. 

The issue became such a big problem in Australia, with a quarter of a million customers suing the company responsible. 

Thousands of Toyota customers have found a faulty diesel particulate filter in their brand new rides that's resulted in people having to take vehicles back repeatedly for unexpected servicing and repairs. 

Owners complained about foul-smelling emissions and increased wear and tear to the engine. 

On Monday, an Australian law firm is contacting owners by phone text and post - asking them to join a class action. 

The issue can affect anyone who bought a Hilux, Landcruiser Prado or Fortuner brand-new between 2015 and 2020. 

"Hilux is the best-selling vehicle in Australia for many years so it affects a lot of vehicles," Carsales editor-in-chief Mike Sinclair said.

Up to a quarter of a million people are eligible for compensation of up to $14,000 each. 

It could become one of Australia's largest class-action lawsuits, with the company potentially paying out a compensation bill of up to $2 billion.

The Federal Court has already ruled against Toyota, but the Japanese manufacturer lodged an appeal on Monday. 

It said they're aware "customers have experienced inconvenience and discomfort from the issue" and it's committed to "free-of-charge repairs".

In New Zealand, all the DPFs that were identified have been rectified for those affected customers.

"They've already changed the cars themselves so it's not happening on the latest models," Sinclair said.

Changes too late for many owners and now the driving force behind one of the country's largest lawsuits.