Honda Motor reached a US$605 million settlement in the United States in a lawsuit over defective Takata air-bags in millions of cars sold in the country, the Wall Street Journal reports.
The automaker reached the settlement over financial-loss claims affecting current and former owners and lessees of roughly 16.5 million vehicles equipped with rupture-prone air-bags, the report said, citing the plaintiffs’ lawyers.
The settlement on Friday, which doesn’t cover personal injury claims, still requires a judge’s approval as part of widespread litigation consolidated in a Miami federal court.
Honda will ultimately pay US$484 million after receiving a 20 percent discount on the settlement amount in consideration of the auto maker’s current recall efforts, according to the report.
The outlay will include a fund of nearly US$200 million aimed at expanding upon the auto maker’s current efforts to reach and encourage customers to visit dealerships to get air-bags in Honda and Acura vehicles replaced, Honda was quoted as saying.
Auto makers including Nissan, Toyota, Subaru, Mazda and BMW reached similar settlements earlier this year collectively totaling more than US$650 million.
Takata’s air-bags have been linked to more than a dozen deaths and some 180 injuries globally.
In the US alone, auto makers are in the process of recalling an unprecedented 42 million vehicles with as many as nearly 70 million air-bags.
Takata, facing billions of dollars in recall costs, filed for bankruptcy protection in the US and Japan earlier this year with a deal to sell operations to a rival.
In January, the company agreed to plead guilty to criminal wire fraud and to pay US$1 billion in penalties, including restitution to auto makers and consumers, the Journal noted.
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