Takata Corp refuses to create a compensation fund image

Takata Corp has declined the suggestion to make a compensation fund for the victims of the defective air bag inflators, which have been linked to eight death and more than 100 injuries, according to U.S. senator Richard Blumenthal.

During an oversight hearing on Takata’s recall of around 34 million air bag inflators in the United States, the Connecticut Democrat asked the Japanese auto parts manufacturer to take into account creating a compensation fund. The reason for Takata’s recalls was that the inflators can explode on impact and fire metal shrapnel into passenger compartments.

“Takata believes that a national compensation fund is not currently required. Takata’s senior management has given the idea of a compensation fund careful consideration, and we will continue to evaluate the possible benefits of such a mechanism,” said Kevin Kennedy, a Takata executive vice president.

He added that the company will focus on individual claims and a multi-district personal injury case in Florida. Takata has also released a statement to emphasize its commitment in treating correctly every injured person following the inflator rupture. Blumenthal, who is also a former state attorney general, said that Takata’s response was disturbing. He added that the brand seems to be unwilling to acknowledge its responsibility for those tragic deaths and injuries or do justice for them. The senator mentioned that he will continue to ask Takata to reconsider their misjudgment and do the right thing for the innocent victims of this recall. General Motor Corporation set up last year a $600 million fund to compensate the victims of faulty ignition switches, another massive recall in the U.S. that was linked to over 120 deaths.

By Gabriela Florea