Nissan agrees to $98 million settlement for claims on Takata air bag inflators

The Dollar Business Bureau

Nissan Motor Co., agreed to pay $97.7 million as claims settlement from consumer economic loss in the US. This is with regard to the recall of 4.4 million vehicles fitted with Takata air bags. Though Nissan claimed that it was ‘not admitting’ to a fault, the settlement is similar to the ones that other automakers were granted- ‘preliminary approval to settlements’ amounting to $553 million. In June, Subaru Corp, BMW AG, Mazda Motor Corp and Toyota Motor Corp had reached a settlement of $553 million, affecting 15.8 million vehicles with the faulty airbags. Ford Motor Co., and Honda Motor Co., have not agreed till date for a settlement on consumer electronic loss claims.

There were at least 18 deaths and 180 injuries worldwide related to the faulty airbags. So widespread was the devastating affect that Takata Motor Corp had to file for a bankruptcy protection in June. The airbags manufactured by Takata, exploded upon excessive force, disbursing metal shrapnel causing grievous injuries and fatalities.

The nature of settlements so far included- contacting the owners of recalled vehicles and addressing the the low number of completed repairs, as well as paying for the economic losses that included out-of-pocket expenses, payment of residual expenses of upto $500, servicing rental cars for some car owners and a customer support program for adjustments and repairs that included extending the warranty period.

Takata Motor Co., on its part agreed to pay $1 billion for the wrong doing in order to establish two restitution funds, $850 million and $125 million for injuries caused to the individuals who have not yet claimed a settlement.