Honda Motor has reached a $605 million settlement with Takata over potentially faulty Takata air bag inflators.
According to sources familiar with the matter, the car manufacturer has taken the economic loss settlement to cover 11.4 million owners of U.S. vehicles with the potentially faulty Takata air bag inflators.
Victims of the air bag defect will receive compensation. At least 16 deaths had been connected to the defected airbags after they exploded and hurled shrapnel into the vehicle’s passengers.
The settlement must still be authorized by a federal judge.
Among the possible settlement benefits for current and former owners of the Honda vehicles are: a free rental car while their vehicle is repaired, a payment of up to $500 a piece, and reimbursements for transportation, towing, lost wages, childcare costs, that are accumulated because of the recall.
“This agreement will not only expand awareness of the Takata recalls and improve driver safety by accelerating the removal of defective airbags from our roads, but will provide compensation to affected Honda consumers,” remarked Peter Prieto, the court-appointed lead counsel for the plaintiffs.
Disclaimer: We have no position in Honda Motor Co Ltd (ADR) (NYSE: HMC) and have not been compensated for this article.