Scandal-plagued airbag maker Takata Corp. filed for bankruptcy in Delaware and Japan late Sunday, June 25, after paying out over $1 billion in fines for the largest auto safety recall in U.S. history.
Owners of about 16.5 million Honda and Acura vehicles with potentially defective Takata Air bags are eligible for financial aid in getting their cars fixed and up to $500 in compensation under the terms of a new consumer settlement.
Japanese automaker Honda agreed to a $605 million class-action settlement covering economic losses suffered by the U.S. owners of vehicles fitted with Takata Air Bags.
“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,” said Peter Prieto, court-appointed lead counsel for the plaintiffs, in a statement.
The supplier pleaded guilty to criminal charges in the U.S. and filed for Chapter 11 bankruptcy protection in June, facing staggering repair costs and more than $1 billion in penalties.
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- Honda Reaches $605 Million Takata Air-Bag SettlementWall Street Journal (subscription)