Four car makers settle claims over Takata inflators for US$553m

Elbert EdwardsMay 20, 2017

According to a news release, plaintiffs in the Takata Airbag Product Liability Litigation filed class action settlement agreements resolving claims against Toyota, Subaru, Mazda and BMW that will accelerate the removal of risky airbag inflators from 15.8 million affected vehicles while also compensating consumers for their economic losses. Thursday's settlement doesn't cover personal-injury cases that are also part of the sprawling litigation against Takata and auto makers that is consolidated in the Florida court.

Takata airbag inflators have been linked to at least 17 deaths and more than 180 injuries worldwide.

The recalls and accidents set off multiple lawsuits against Takata and the auto companies using the air bags, alleging personal injuries or deaths or economic losses. The issue is critical because the huge recall covers more than a dozen automakers, and NHTSA expects that it will affect 64 to 69 million inflators in 42 million vehicles by 2020. BMW, Mazda, Subaru and Toyota have agreed to jointly provide a total of approximately $553 million to fund consumer outreach, customer reimbursements and rental car/loaner programs in an effort to improve recall remedy completion rates.

The settlement includes a new independent outreach program that seeks to dramatically increase recall remedy completion rates and will regularly contact owners. "It will take years to complete the recalls". Owners getting a recall can be reimbursed for lost wages, transportation and child-care expenses. Toyota had the highest, with 9.2 million affected cars and trucks; Subaru came next, with 2.6 million; BMW followed, with 2.3 milliom; and Mazda came in at a still-significant 1.7 million vehicles with the systems.

Lawsuits against Honda Motor Company HMC, Ford Motor Company F and Nissan Motor have not been settled yet, per the lawyers.

Automakers would be required to provide free rental cars to owners of the highest-risk cars.

Takata agreed to pay $1 billion in criminal penalties in January, including $975 million paid to carmakers and to consumers who purchased vehicles with the company's exploding airbags.

Automakers have recalled 46 million Takata air bag inflators in 29 million US vehicles.

The solution for a mass recall on defective Takata airbags is under way, though it seems to be far from over.

Related Articles:



« Previous article
Next article »


Popular Pages

Everything we know about Pippa Middleton's wedding
Meanwhile, his brother Spencer is a reality TV star and has been on shows like I'm A Celebrity, Get Me Out of Here . News, she did postpone plans to have drinks with a fashion and beauty vlogger.

Cleveland Indians call up former No. 1 pick Bradley Zimmer from
Those early numbers are encouraging news after a 2016 season most evaluators considered a mixed bag. Zimmer was hitting.294 with five home runs and 14 RBI in 33 games with Columbus.

Arguments start in Trump travel ban hearing
Today's case was heard by three judges who were all appointed by President Bill Clinton, so they could move relatively quickly. Watson found that the travel ban likely violated the constitution's Establishment Clause by discriminating against Muslims.

Browns Add Needed Help To Secondary With CB Jason McCourty
McCourty, who was coached by Browns defensive coordinator Gregg Williams in Tennessee said he's excited to join the Browns. According to Fallon, McCourty's deal with the Browns is expected to be for two-years and total out at $6 million.

Local election results in Scotland likely to heal COSLA rift
Ms Hair also increased the party's share of the vote by 15% in Angus South in the Scottish Parliament election past year . Ms Davidson insisted then: "We won the local government election is Gordon this week, beating the SNP into second place".

Governor honors law enforcement officers fallen in the line of duty
Bullhead City Police Chief Brian Williamson also used a personal connection to describe what the occasion means to him. A memorial service was held in Lafayette for friends, family, and colleagues of the fallen.

Haley: 'I Believe the Western Wall Is Part of Israel'
Netanyahu's office expressed shock, said an official speaking anonymously because he was not authorised to discuss the matter. McMaster, President Donald Trump's national security adviser, declined to say whether the Western Wall was part of Israel.

North Korea Tests Missile That Comes Dangerously Close to Russian Federation
It said the missile fell into the Japan Sea after flying more than 700 kilometers. The North did not specify what proper choice it had in mind.

Robert Lighthizer sworn in as US Trade Representative
The Republican senator wants the Trump administration to revamp the agreement, not end it. Guajardo also stated that he would meet with U.S.

Cabinet approves special bill for Emperor Akihito to step down
Akihito, who has had heart surgery and was treated for prostate cancer, is loved and revered by many Japanese. The current law was set in 1947 and bans abdication as it is seen as a potential risk to political stability.