Honda reaches $605m settlement over Takata airbags

Automaker Honda has struck a proposed $605m settlement to resolve US consumer claims in connection with recalled Takata airbags.

Honda, which was Takata’s largest customer, is the sixth car maker to settle US litigation over the recall. In addition to compensating customers for out-of-pocket losses stemming from the recall, the settlement would also create an outreach programme to help speed up the recall and replacement of the recalled parts, among other features, according to court filings on Friday.

Peter Prieto, a lead lawyer for the consumers bringing the cases, said in a statement:

“In reaching this agreement, Honda, to its credit and the benefit of its customers, has complemented and enhanced its ongoing industry-innovative efforts to remove the defective Takata airbags from its vehicles. 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. We will continue prosecuting our claims against Ford and other automobile manufacturers to ensure that our clients receive the relief they deserve.”

Honda, which was Takata’s biggest customer, was hit especially hard by the recall, which has encompassed millions of vehicles made by numerous companies and has been linked to at least 17 deaths and more than 100 injuries worldwide. Takata has paid a $1bn criminal penalty in the US in connection with the recall and filed for bankruptcy.

Toyota, Subaru, Mazda and Subaru have already agreed to pay $553m to settle US consumer litigation over the recall. Nissan agreed to a separate $97.7m deal.

The settlement will require court approval and does not cover personal injury or property damage claims.