Honda Roped in for $605 Million Settlement for Defective Takata Air Bags

Honda Roped In For $605 Million Settlement For Defective Takata Air Bags

Honda settled down with a lawsuit at a price of $605 million. The matter was raised due to defective air bags found in millions of cars driven on American streets. The statement was made by the legal team for the victims Friday this week.

Honda works with Toyota, BMW, Mazda, Nissan and Subaru to be moving on with the settlement. Not just that, defective air bags would be replaced and car owners would be compensated for the loss. Recently, the agreement was filed in the US District Court situated in Miami.

According to one of the lawyers, Peter Prieto, the deal has to be approved and is aimed at enhancing safety by speeding up the removal of air bags in every vehicle. In addition, the owners would be offered a compensation of $500 along with expenses. This is also applicable to rental cars while the automobiles are undergoing repairs. Furthermore, the lawyer spoke about prosecuting claims against Ford and other famous manufacturers. This was forwarded to make sure that clients would receive relief as per their grievances.

Since the year 2001, multiple models of Honda have been affected. These include Civic, CR-V and Accord. Sixteen deaths occurred due to the air bag defect. This is because the bags were inflated with excessive force shooting shrapnel from the canister darting towards passengers as well as drivers.

The issue further aggravated to mark history with an impact felt from 100 million vehicles across the globe.

Just this year in the month of February, Takata felt guilty for being a fraud and hiding the defect. The automotive parts company was then penalized and was asked to pay a fine of $1 billion. Ahead, the company claimed for bankruptcy in June.