Four automakers settle claims concerning Takata inflators for $553 million

by SpeedLux
Takata air bag recall, Airbag Recall

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.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

SpeedLux

SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.

Subscribe

©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More