$553 Million Accord for U.S. Drivers Over Takata Airbags

$553 Million Accord for U.S. Drivers Over Takata Airbags

- in Automotive

Mr. Prieto is involved in similar economic-loss claims against Ford, Nissan and Honda. He declined to say if a settlement was being discussed with those automakers.

The Airbag in Your Car Could Explode. This Is What You Should Do About It.

Defective airbags made by Takata have been tied to 11 deaths and more than 180 injuries in the United States alone. The ensuing recall — the largest in automotive history — has turned out to be messy, confusing and frustrating for car owners.

The inflaters developed by Takata use a compound known as ammonium nitrate that is supposed to fill airbags in a powerful but controlled explosion. When exposed to air or moisture over long periods of time, however, it can become unstable and explode more violently than intended. Takata airbags have been linked to at least 11 deaths and more than 180 injuries.

Takata and other suppliers have been making replacement inflaters for years. But the task is enormous because 42 million vehicles with Takata inflaters were sold in the United States.

Doug Waikem, owner of a Subaru franchise and six other dealerships in Massillon, Ohio, said the scope of the problem was hard to fathom. About 21,000 cars sold by his dealerships alone need replacement airbags, and part deliveries are sporadic. When a shipment is due, his staff contacts owners by phone, email or letter to encourage them to come in.

“A lot of people here just don’t respond,” he said. “It’s frustrating.”

Under the provisionary settlement, Toyota agreed to pay $278.5 million, BMW $131 million, Mazda $75.8 million and Subaru $68.3 million. The automakers agreed to provide rental cars to owners most at risk, including those with older vehicles or living in humid areas like the Southeast or Hawaii.

The settlement will also provide funds for an effort to urge owners — through phone calls, email, social media and direct mail — to have their cars repaired.

It does not cover personal injuries claims related to the airbags.

Takata and its largest customer, Honda, first noted violent airbag ruptures more than a decade ago but failed to initiate recalls or notify safety regulators. Takata was later found to have manipulated and destroyed testing data related to its inflaters, and for a time it blamed limited manufacturing errors for the explosions.

The first recall, in 2008, affected only 4,000 cars.

In February, Takata pleaded guilty to fraud charges, acknowledging that it had provided false safety test data. The company agreed to provide $875 million to compensate automakers for costs related to recalls, and $125 million for people killed or injured.

The Justice Department has also filed criminal charges against three Takata executives. Those cases are pending.

Continue reading the main story

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like

Republicans’ $1.5 Trillion Tax Plan Appears on Track to Pass Next Week

The bill also includes changes large and small