A collective of 13 automakers that includes Honda, General Motors, Ford, Toyota and Volkswagen, will pay up to $130 million to compensate those injured by defective Takata airbag inflators.
The deal will resolve Takata’s ongoing bankruptcy crisis and allow Key Safety Systems to purchase the company for $1.6 billion. This will ensure Takata can continue to make replacement inflator kits as the largest recall in automotive history continues.
In an interview with Reuters, attorney Joe Rice, who represents many injury plaintiffs, said that the car manufacturers will contribute between $80 million and $130 million to Takata’s bankruptcy estate.
On the back of the contribution from the automakers, a committee of injured drivers has dropped their objection to the Takata bankruptcy exit plan proposed by TK Holdings. Additionally, victims of faulty airbag inflators will be able to receive money from a $125 million compensation fund previously established by the U.S. Department of Justice.
One automaker that stands out in the saga is Honda, as 20 out of 22 deaths that have been reported worldwide have occurred in one of its vehicles, mostly in the United States. Consequently, the Japanese manufacturer has agreed to create a trust that will ensure injuries linked to its vehicles are compensated in full. In return, it will be shielded from other lawsuits and won’t face the risk of punitive damages.