Takata Agrees to $650 Million Auto Airbag Settlement

A Takata auto airbag settlement has been reached for the amount of $650 million, to help settle numerous claims of product liability. However, due to the company’s current financial state, only a portion of the auto airbag settlement will be paid.

These Takata airbag claims come from 44 states and Washington D.C., with the states saying they will hold off one collecting the auto airbag settlement until more money is available. Leading state South Carolina will be an exception to this, with state officials collecting a little over $139,000 to cover litigation costs.

Takata filed bankruptcy last year due to the high litigation expenses from exploding airbag claims, and multimillion-dollar fines imposed by government regulators. A Delaware bankruptcy judge recently approved a reorganization plan for the auto airbag settlement.

Takata agreed to the terms of the auto airbag settlement with the United States Justice Department and agreed to pay $850 million in restitution to automobile companies who bought the alleged defective airbags and had to conduct recalls of their vehicles.

In addition, the reorganization plan states Takata will sell most of its assets not related to airbags to a rival in China for $1.6 billion. Takata also agreed to not to use any statements like “safe to use” for their airbags, unless such statements are supported by scientific data and safety testing.

Takata must also not use any false or misleading language and must cooperate with car companies to ensure replacement airbags are provided. The company also agreed to not sell any airbags utilizing ammonium nitrate unless it is for recalled car parts.

These provisions were also mentioned in an agreement Takata reached with the National Highway Traffic Safety Administration (NHTSA).

Overview of Takata Airbag Problems

The numerous Takata airbag claims stem from the airbags suddenly exploding or spontaneously deploying, sending dangerous pieces metal and shrapnel into drivers and passengers. According to the claims, the front airbags can suddenly explode or suddenly deploy without impact.

This is because of problems with the airbag inflator, which consists of a metal cartridge loaded with propellant. The propellant in the metal cartridges consists of ammonium nitrate, which is a chemical also utilized for explosions.

The airbags are supposed to only use enough force for typical airbag deployment, but the propellant problems have caused them to explode with more force than is safe. This is because the airbags do not have a sufficient amount of drying agent, which limits the force during deployment. The propellants also reportedly degrade under high heat and humidity.

These exploding Takata airbags have been linked to at least 22 deaths and over 180 injuries, with many consumers and attorneys alleging Takata either knew or should have known the dangerous the defective airbags presented to consumers.

The exploding Takata airbags initiated the largest automobile recall in the industry of the United States, with 69 million inflators in the United States and another 60 million worldwide.

Consumers who have been impacted by exploding Takata airbags or spontaneous airbag deployment may be able to participate in the auto airbag settlement or file their own course of legal action.

Were You Affected by the Takata Airbag Defect?

The Takata airbag recall affects over 37 million vehicles sold or leased under dozens of different brands, including:

• Acura
• Audi
• BMW
• Cadillac
• Chevrolet
• Chrysler
• Daimler
• Sprinter
• Sterling Bullet
• Ferrari
• Dodge/Ram
• Fisker
• Ford
• GMC
• Honda
• Infiniti
• Jaguar
• Jeep
• Land Rover
• Lexus
• Lincoln
• Mazda
• McLaren
• Mercedes-Benz
• Mercury
• Mitsubishi
• Nissan
• Pontiac
• Saab
• Saturn
• Scion
• Subaru
• Tesla
• Toyota
• Volkswagen

If you have owned or leased a vehicle under any of the brands above, you may qualify to file your own airbag lawsuit or Takata class action lawsuit.
You can find a full list of makes, models and model years on our Defective Airbag Recall Investigation Page.

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