Automakers shell out millions for Takata’s settlement

Money to compensate those who have been injured by the company’s faulty airbags

Automakers shell out millions for Takata’s settlement

Motor & Fleet

By Lyle Adriano

A group of car manufacturers will contribute about $130 million to compensate those injured by Takata’s malfunctioning airbags.

Attorney Joe Rice, representing dozens of personal injury plaintiffs in the bankruptcy, told Reuters that the 13 automakers are helping Takata as part of a deal to resolve the airbag maker’s insolvency. The attorney explained that the deal was meant to keep Takata operations afloat so that it could make replacement inflator kits.

Takata and its US unit, TK Holdings, filed for bankruptcy last year following a global automotive safety recall related to the company’s airbag inflators, which could explode with excessive force and cause injuries.

Tens of millions of airbags have been recalled in connection to the malfunction issue, but have yet to be replaced.

A committee of injured drivers dropped their objection to TK Holdings’ proposed bankruptcy plan in response to the automakers’ deal to pitch in with the compensation pay.

Apart from the $130 million, victims will also be able to collection from a separate $125 million compensation fund, created as part of a plea deal Takata entered with the US Department of Justice last year. Automakers will also receive their share of an $850 million compensation fund.


Keep up with the latest news and events

Join our mailing list, it’s free!