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Toyota, Mazda, Subaru and BMW Settle Takata Suit for $553M

Four makers admit no wrongdoing in settlement.

by on May.18, 2017

Four automakers – Toyota, BMW, Mazda and Subaru – agreed to settle a class-action lawsuit for $553 million.

Toyota, Mazda, Subaru and BMW agreed to a $553 million settlement for a class-action lawsuit, accounting for 16 million vehicles equipped with faulty Takata airbag inflators, according to court documents.

Reuters reported that Toyota will pay $278.5 million as part of the settlement while BMW will pay $131 million, Mazda $76 million and Subaru $68 million. Nineteen automakers used the faulty inflators responsible for more than a dozen deaths and nearly 200 injuries worldwide.

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The inflators will explode under certain conditions, sending plastic and metal shrapnel into the cabin of the vehicle. Among those automakers in the class-action suit that haven’t reached a settlement: Honda, Ford and Nissan.

The four automakers said in a joint statement they had agreed to settle “given the size, scope and severity of the Takata recall,” but did not admit fault or liability, according to Reuters. The settlements need to be approved by a Florida judge and will be overseen by a court-appointed administrator.

(Former FBI Director overseeing Takata funds. Click Here for the story.)

The deals include an independent outreach program designed to increase the response rates for the recalls of vehicles with these airbags.

They also include provisions accounting for economic losses, including paying out-of-pocket expenses while waiting for recall remedies; and a customer support program for repairs and adjustments, including an extended warranty, Reuters reported.

(Takata pleads guilty, setting up victims fund. Click Here for the story.)

Takata pleaded guilty to criminal wrongdoing in January. The supplier agreed to pay $1 billion to resolve a federal investigation into the faulty inflators.

The company also agreed to establish $1 billion in restitution funds. The first includes $850 million to compensate automakers for recalls, and a second $125 million fund for individuals injured by its airbags who have not already reached a settlement.

(Another Takata recall impacts 13 automakers. Click Here for the latest.)

Former FBI Director Robert Mueller, who was selected to oversee the administration of the two funds, just agreed to be the special counsel to oversee the investigation into ties between President Donald Trump’s campaign and Russian officials.

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