According to the settlement terms, BMW of North America LLC will pay $131 million, Mazda North American Operations will pay $75,805,050, Subaru of America Inc. will pay $68,262,257 and Toyota Motor Corp., $278,500,000.
The settlement calls for reimbursing current and former auto owners and lessees for costs they incurred for renting or buying replacement vehicles while waiting for those with defective air bags to be fixed.
On Thursday, May 18, 2017, Toyota, Subaru, Mazda and BMW reached a proposed settlement that would compensate owners of 15.8 million vehicles for economic losses stemming from the massive recall of Takata air bags. Lawsuits against Honda Motor Co 7267.T , Ford Motor Co and Nissan Motor Co 7201.T have not been settled, lawyers said.
"The low number of recalls to-date demonstrates the need for a settlement of this type, and we look forward to accelerating the removal of defective Takata airbags from the roads", said Peter Prieto, the court-appointed chair lead counsel, who helped negotiate the settlement.
Takata inflators, which can explode with excessive force and unleash metal shrapnel inside cars and trucks, are blamed for at least 16 deaths and more than 180 injuries worldwide. These costs can include rental cars, child care, lost wages, or any other reasonable costs associated with bringing in a vehicle for repairs.
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Automakers have recalled 46 million Takata air bag inflators in 29 million USA vehicles. About 100 million inflators have been recalled worldwide by 19 major automakers, the largest automotive recall ever for a single safety issue.
"The programs offered in these agreements are meant to increase recall remedy completion rates for Takata airbag inflators, among other customer benefits", the carmakers said in a joint statement Thursday.
In January, Takata agreed to plead guilty to criminal wrongdoing and to pay $1 billion to resolve a federal investigation into its inflators. Takata also reached a $1 billion settlement with the US that included a $25 million criminal fine.
The settlement does not cover claims of personal injury or property damage, the plaintiffs, say.