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Four automakers settle Takata airbag claims for $553 million

Four automakers settle Takata airbag claims for $553 million image

AutoIndustriya.com / | May 23, 2017 00:44

Toyota, BMW, Mazda and Subaru announces programs to fix faulty airbags

Four automakers, namely Toyota, BMW, Mazda and Subaru have announced agreements in order to resolve the economic loss relating to the potentially defective Takata airbag inflators. The agreed amount equates to a total of $553 million US and will cover owners of nearly 16 million recalled vehicles in the United States.

Out of the four, Toyota holds the biggest share in the settlement costs at $278.5 million, followed by BMW at $131 million, Mazda at $76 million and Subaru at $68 million. Meanwhile, other automakers such as Ford and Nissan have not yet settled their lawsuits.

Given that the proposed settlements are approved, the automakers will separately support multiple activities, all of which will be conducted under the supervision of the court. The four activities to be made by the manufacturers include: an outreach program set to speed up the recall and repair process, provide affected owners with loaner cars, an out-of-pocket-claims and residual distribution which would allow customers to request reimbursements and fees; and administration, which will go towards covering various expenses involved in the suit and settlement.

Apart from the recall, the respective manufacturers will be providing additional support to the affected customers. This being a recall, repairs, will be done free of charge by all the manufacturers. Toyota, BMW, Mazda and Subaru have explicitly denied any liability for the faulty Takata inflators.