Air bag maker Takata Corp. declares bankruptcy - UPI.com (2024)

FAQs

Is the Takata airbag settlement real? ›

Pursuant to the Court's Order on January 23, 2023, the BMW, Honda, Mazda, Nissan, Subaru, and Toyota Takata Airbag Products Liability Litigation Settlement Programs are now closed. Payment has been issued on all claims determined to be eligible; all other claims have been closed with finality and will not be-reopened.

How much compensation am I entitled to? The Per Vehicle Settlement Amount to Participating Group Members has been determined to be $846.55. Where separate Group Members lodged a registration for the same Affected VIN, the payment between those group members will be split evenly.

Takata has agreed to plead guilty to the charge and pay a total of $1 billion in criminal penalties, including $975 million in restitution and a $25 million fine.

Takata was forced into bankruptcy amid lawsuits, multimillion-dollar fines and crushing recall costs involving the air bags. Key to the restructuring plan is the planned sale of most of its assets to a Chinese-owned rival for $1.6 billion.

In June 2017, Takata filed for bankruptcy. It was acquired by Key Safety Systems.

Under the terms of the settlement, the defendants would pay a combined sum of $52 million, equating to approximately $1,558 per vehicle when divided amongst the 33,400 participating class members.

A total of 67 million airbags have been recalled, and at the end of 2022, 11 million were still yet to be replaced. At the heart of the problem is the airbag's inflator, a metal cartridge loaded with propellant wafers, which in some cases has ignited with explosive force.

The federal government does not tax your settlement money since the funds received are intended to compensate you for losses that you endured. This is true both for actual economic damages (such as medical bills and lost wages) and for non-economic damages such as for pain and suffering and emotional distress.

How many people have been killed or injured by defective Takata PSAN air bag inflators? NHTSA has confirmed that 27 people in the United States have been killed when their defective Takata PSAN air bag inflators exploded.

Regulators determined that the potentially deadly flaw in the Takata airbag lies in the airbag's propellant. To inflate the airbags, Takata used an ammonium nitrate compound without a drying agent. However, this propellant can burn too fast and cause the inflator to explode.

What is the root cause of Takata airbags? ›

Wharton management professor John Paul MacDuffie pointed to a fundamental problem in Takata's use of ammonium nitrate in cartridges within its airbags. The cartridges lacked a material to absorb moisture, which led to them inflating prematurely and exploding, especially in higher levels of heat and humidity.

The largest auto recall in history carries with it a hefty price tag for the maker of the defective airbags that could eject metal shrapnel when deployed. Airbag maker Takata could be on the hook for $24 billion stemming from the cost to recall millions of its airbags, according to a report from Bloomberg News.

The faulty airbags have resulted in at least 11 deaths and 180 injuries in the United States, the impending resignation of the Takata CEO, and the worst reputation of any major company. Financial services companies tend to have the worst reputations of any major businesses.

Some automakers will not certify a used car unless a Takata airbag has first been remedied. “As you may know, federal law permits trading, selling, and delivering used vehicles with open recalls,” Ford safety communications manager Elizabeth Weigandt said.

Overview. Approximately 67 million Takata air bags (priority groups 1-12) have been recalled because these air bags can explode when deployed, causing serious injury or even death. All vehicle owners should: Check for Recalls using your vehicle identification number (VIN).

Eligible Class Members' payments may range from $37 to $125, depending on the state in which the Class Member resides, the number of claims submitted, and other adjustments and deductions.

Toyota has agreed to pay out $65 million to settle the suit, minus initial notice and settlement administration costs. The OEM also agrees to extend class members' new parts warranty coverage to 12 years from the date of the court's approval of the settlement terms.

A class action, also known as a class action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group.