Toyota, Subaru, Mazda and BMW reach settlements over Takata air bags
- Author: Latoya Cobb May 19, 2017,
May 19, 2017, 4:42
According to the settlement terms, BMW of North America LLC will pay $131 million, Mazda North American Operations will pay $75,805,050, Subaru of America Inc. will pay $68,262,257 and Toyota Motor Corp., $278,500,000.
According to the Detroit News, the settlement would compensate owners of 15.8 million vehicles for money they lost as a resut of the recall.
The settlement addressed claims from the owners of nearly 16 million recalled vehicles, and will resolve economic losses of vehicle owners and lessees, including reimbursing them the cost of replacement vehicles while waiting for the airbags to be fixed.
The plaintiffs in the case will continue to pursue their claims against other automakers named in the suit, which include Ford, Honda, and Nissan.
The settlement still needs to be approved by the U.S. District Court for the Southern District of Florida but that seems likely now that a settlement has been reached.
Part of the settlement money will be used to encourage consumers whose cars are under recall to bring them to dealers for fix.
Automakers have recalled 46 million Takata air bag inflators in 29 million USA vehicles.
The airbags are blamed for 11 deaths and more than 150 injuries, though further cases are now under review.
The settlement would also require the automakers to step up their efforts to locate owners and educate them about the need to complete the recall repairs.
More than 14 million of the air bags have been repaired in the USA, according to the National Highway Traffic Safety Administration.
In January, Takata agreed to plead guilty to criminal wrongdoing and to pay $1 billion to resolve a federal investigation into its inflators.
The settlement does not cover claims of personal injury or property damage, the plaintiffs, say.
The deal - which comes more than eight years after initial reports of the recall first emerged - stipulates that the carmakers will pay $553 million.
The problem touched off the largest automotive recall in US history involving 42 million vehicles.