468x60 General & Logo

Toyota, 3 others settle suit over Takata air bags

Toyota, Subaru, Mazda and BMW have reached a proposed settlement that would compensate owners of 15.8 million vehicles for money they lost due to the massive recall of Takata air bags. In documents filed Thursday with a federal court in Miami, the automakers agreed to pay $553 million to compensate owners and widen their efforts to make sure vehicles are being repaired. Owners could also be compensated for the costs of rental cars or vehicle storage while they waited for cars to be repaired. U.S. safety regulators have determined that older cars are at the highest risk, since a chemical Takata used in its air bags can break down over time when it’s exposed to humidity. The 2002-2006 BMW 3 Series, 2003-2006 Mazda6, 2005-2008 Subaru Legacy and 2003-2007 Toyota Corolla are among the vehicles covered by this settlement that are considered the highest risk. Nissan, Honda and Ford are also part of the ongoing federal court case, but plaintiffs’ attorney Peter Prieto wouldn’t say Thursday whether he is talking to those companies about similar settlements.

Article by By Dee-Ann Durbin (c) Business and Technology News - Read full story here.