BMW, Mazda, Subaru and Toyota agree $553 million Takata settlement in US
Four carmakers will pay $553 million to settle claims from US owners affected by faulty Takata airbag inflators, covering recall outreach, repairs and customer expenses.
BMW, Mazda, Subaru and Toyota have agreed to pay $553 million to settle claims in the United States from owners affected by defective Takata airbag inflators. The settlement, announced in May 2017, is one of the largest to date in the ongoing recall crisis, which has involved tens of millions of vehicles worldwide.
The agreement covers US owners whose vehicles were fitted with Takata airbags later found to be at risk of rupturing and spraying metal fragments in a crash. The affected companies are among 19 manufacturers caught up in what has become the largest recall in automotive history. More than 42 million vehicles in the US alone have been identified for repairs due to the defect.
Funds from the settlement will be used to support several programmes. These include expanded outreach to encourage owners to bring in vehicles for recall work, a loaner car scheme for those waiting on repairs, and reimbursement for reasonable out-of-pocket expenses linked to the recall. The four manufacturers will also set up customer support programmes to assist with both current and future recall-related repairs.
Scope of the Takata recall
Takata airbag inflators have been linked to at least 16 deaths in the US, prompting recalls across the industry. The defect involves ammonium nitrate propellant that can degrade over time, especially in humid conditions, increasing the risk of explosion. Takata admitted to criminal charges in early 2017, and at the time was reported to be considering bankruptcy.
- BMW recalls included E46 3 Series models. For details, see /recall-roundup-bmw-3-series-e46-for-takata-airbag-inflators.
- Toyota, Subaru and Mazda models from the early 2000s to mid-2010s were also affected.
The four automakers involved in the settlement denied any admission of liability or wrongdoing. They agreed to the settlement to resolve economic loss claims by owners and to improve recall remedy rates. The settlement does not cover personal injury or wrongful death claims, which are subject to separate legal action.
What it means for affected owners
Owners of recalled vehicles in the US are eligible for benefits under the settlement, including help with recall repairs, access to loaner vehicles and reimbursement for certain expenses. The outreach programmes are intended to increase the number of vehicles brought in for repair, as completion rates have lagged in some regions. Further recalls and settlements involving other manufacturers are expected as the Takata process continues.
