Honda sets aside $605 million to settle Takata airbag claims

Sunday

If the court approves the amount Honda is offering to pay, it’ll be the biggest among all Takata-related settlements. Toyota, Subaru, Mazda and Subaru agreed to settle for a total of $553 earlier this year, while Nissan settled a class-action lawsuit for $97.7 million. It only makes sense, though, since Honda is Takata’s biggest customer: among the 18 deaths related to the the company’s rupture-prone airbags, 17 happened in Honda vehicles.

Takata has been in hot water for years, since its airbags have the tendency to explode violently and shoot out hot metal shrapnels inside vehicles. However, things only got serious when the Senate accused the company of faking crash data in 2016, leading to the biggest auto recall in the US. A total of 42 million vehicles have been recalled so far, but the companies involved expect to recall 83 million more vehicles. Takata agreed to plead guilty to criminal misconduct and to settle for $1 billion late last year. Since then, three of its executives have been charged for falsifying crash data, while the company itself had to file for Chapter 11 bankruptcy.

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