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Honda in $605 Million Settlement in Takata Lawsuits
Honda Motor Co. has agreed to pay $605 million to settle a U.S. class-action lawsuit covering economic losses claimed by thousands of customers linked to recalls of defective Takata airbag inflators.
#economics #legal #Acura
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Honda Motor Co. has agreed to pay $605 million to settle a U.S. class-action lawsuit covering economic losses claimed by thousands of customers linked to recalls of defective Takata airbag inflators.
Honda’s agreement covers 11.4 million Honda and Acura brand vehicles that have been recalled to date and another 5.1 million likely to be called back later. All contain inflators that could explode when triggered by a crash.
The settlement will cover out-of-pocket costs such as child daycare, rental car fees, lost wages and claimed loss of resale value involving affected owners.
Reuters notes that five other carmakers have reached similar preliminary deals worth a combined $650 million. The group comprises BMW, Mazda, Nissan, Subaru and Toyota.
At least 18 fatalities—most of them in Honda vehicles—have been blamed on the faulty inflators worldwide. So far 19 carmakers have recalled 42 million vehicles in the U.S. alone to replace the devices. Takata, which declared bankruptcy in June, has estimated 125 million vehicles eventually will be repaired.
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