Most of the time we stay out of the politics of the auto industry but as a legit auto blog we need to talk about today’s big story. Yes, I’m talking about Toyota Motor Corp’s epic $1.2 billion settlement with the U.S. Department of Justice regarding its four-year criminal investigation focused on whether Toyota was up front in reporting problems related to unintended acceleration troubles.

Logo credit: Toyota UK

Under today’s agreement, the company will admit that it misled U.S. consumers by making deceptive statements about two safety issues affecting its vehicles. As a result, Toyota will pay a $1.2-billion financial penalty under a “deferred prosecution agreement.”

Many insiders are saying this deal could serve as a template for how U.S. authorities approach a similar investigation into General Motors Co.

Sources: Reuters and CBC