Four carmakers will pay $553m to settle claims over Takata airbags

Courtney Goldsmith
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Issues with Takata's airbag inflators prompted a huge global recall (Source: Getty)

Four carmakers today agreed to pay $553m (£425.6m) to settle a US class-action lawsuit over potentially defective Takata airbags inflators.

The recall by 19 major companies of nearly 16m vehicles around the world was the largest automotive recall ever for a single safety issue.

Toyota will pay the largest sum, $278.5m, while BMW's share is $131m, Mazda's is $76m and Subaru's is $68m, according to court documents filed today.

Takata's inflators were blamed for at least 16 deaths and more than 180 injuries around the globe. The Japanese firm reached a $1bn criminal settlement with the US government earlier this year.

Read more: Airbag maker Takata's share price surges on KKR interest

In a joint statement, the four automakers said they agreed to settle "given the size, scope and severity of the Takata recall," but did not admit fault or liability.

The automakers said the settlements, which are subject to approval by a Florida judge, will be overseen by a court-appointed administrator.

The settlement includes a new independent outreach programme to dramatically increase recall remedy completion rates and regularly contact owners. It also provides compensation for economic losses resulting from the recall.

Read more: Takata's share price is crashing as airbag recall balloons

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