The fallout from the Takata airbag recall continues as BMW, Mazda, Subaru, and Toyota have reached a $553 million settlement with the United States government.
The four automakers are the first to agree to a settlement over the Takata recall and the funds will be used for consumer outreach, rental car/loaner programs, and out-of-pocket cost reimbursement. More settlements are possible in the future as the companies note the “Takata airbag inflator recall is the largest such action in history and affects more than 42 million vehicles in the United States, across 19 automakers.”
Under the terms of the agreement, the automakers will fund outreach programs with the goal of “significantly increasing” recall completion rates. The companies will also offer rental cars to customers who request them and cannot get replacement parts for their vehicle within 30 days.
The settlement also calls for the automakers to pay out-of-pocket costs to affected owners. A special administrator will determine who is eligible and what is reimbursable, but the companies note customers will need to submit a request that is reasonable.
Lastly, the automakers will cover an assortment of different costs related to claims administration and notification of owners.
The settlement still needs to be approved by the U.S. District Court for the Southern District of Florida but that seems likely now that a settlement has been reached.