Automotive supplier Dana Holding Corp. agreed to pay $25 million to a North American subsidiary of Toyota Motor Corp. as part of a settlement for warranty claims.
Dana said Wednesday it plans to take a fourth-quarter charge as a result of the payment.
The settlement covers the corrosion of frames that Dana's former structural products business assembled for select Tacoma pickup trucks, Dana said.
The Tacoma pickups were subject to a customer support program initiated by Toyota in 2008.
Toledo, Ohio-based Dana sold the structural products business in March 2010 for $150 million to Mexican auto parts maker Metalsa S.A. de C.V., a unit of privately held Grupo Proeza.
The Toyota subsidiary is Toyota Motor Engineering & Manufacturing North America Inc., Dana said in a statement.