Automakers and Key Safety Systems (the company acquiring Takata’s viable business assets) have agreed upon a deal that will end the bankruptcy for Takata Corp’s U.S. unit, TK Holdings Inc. The agreement includes a trust that will be established to pay compensation for those injured or killed by defective Takata airbags. Compensation will vary based on the type of injury, ranging from $10,000 for bruising to $5 million for death or loss of eyesight.
The recalled Takata airbags contain a dangerous propellant that can degrade over time and cause the airbags to explode, shooting metal casing debris towards drivers and passengers. At least 20 people have died worldwide and over 280 have been hurt from explosions in the faulty airbags. 19 automakers have recalled up to 69 million inflators found in 42 million vehicles, making this automotive recall the largest in U.S. history.
The 13 automakers participating in the deal include General Motors Co, Ford Motor Co, Toyota Motor Corp, and the U.S. affiliates of Honda Motor Co Ltd and Volkswagen AG.
According to Thomson Reuters, “Key Safety Systems plans to acquire Takata’s viable operations for $1.6 billion. The proceeds will fund restitution claims for automakers and help pay injury claims as part of a plea deal with the U.S. Department of Justice.”
Takata Airbag Recall Lawsuit & Your Legal Rights
Automakers have a legal duty to produce cars and components that are safe, and promptly correct any known safety defects. Lieff Cabraser represents drivers across the U.S. harmed by these air bag defects in lawsuits against Takata. Nearly 42 million vehicles, most manufactured prior to 2009, have been recalled worldwide due to the problem. This is the largest automotive recall to date in U.S. history. These airbags were installed in U.S. and foreign made cars and pickup trucks including in vehicles made by Mercedes-Benz, Ford, GM, Chrysler, Honda, Nissan, Mazda, and BMW, among others.