Four car manufacturers accepted a $553 million settlement to resolve class-action financial loss claims covering owners of almost 16 million recalled automobiles with possibly malfunctioning Takata airbag inflators, court documents filed on Thursday revealed.
Toyota Motor’s share of the settlement expenses is $278.5 million, followed by BMW at $131 million, Mazda Motor at $76 million and Subaru Corp at $68 million.
While the settlement does not imply an end to legal headaches dealt with by Takata Corp or its automaker customers, the resolution might assist the embattled Japanese air bag maker’s efforts to look for a monetary sponsor by removing one litigation uncertainty.
Shares of Takata, which was not called as a plaintiff in the event, leapt 20 percent in Tokyo on Friday. Takata has been looking for over a year to discover a monetary sponsor to pay for costs to change its inflators which are at the center of the vehicle market’s biggest-ever recall.
U.S. automobile parts maker Key Safety Systems (KSS) and Bain Capital are aiming to strike a rescue offer worth around 200 billion yen with Takata’s steering committee and its automaker consumers.
The settlement highlights the ripple effect of the recalls, which began around 2008 and covers around 100 million inflators worldwide used in cars made by 19 car manufacturers.
Takata’s inflators can blow up with extreme force and unleash metal shrapnel inside vehicles, and are blamed for at least 16 deaths and over 180 injuries worldwide.
