Honda owners to get up to $500, rental cars in Takata deal
Automaker had most cars affected by air bag defect
Owners of about 16.5 million Honda and Acura vehicles with potentially defective Takata air bags are eligible for financial aid in getting their cars fixed and up to $500 in compensation under terms of a new settlement.
Japanese automaker Honda agreed to a $605 million class-action settlement covering economic losses suffered by the U.S. owners of vehicles fitted with Takata air bags. Victims of the defect will receive compensation from a separate fund.
The deal comes after similar agreements between Takata air bag vehicle owners and Nissan, Toyota, BMW, Mazda and Subaru. But Honda had the most vehicles affected by the Takata defect, which has been linked to at least 16 deaths after air bags exploded, hurling fiery fragments into passengers. A federal judge must still authorize the deal.
Among the possible settlement benefits for current and former owners of the Honda vehicles:
Payments of up to $500 apiece. Free rental car for use while awaiting repairs.
Reimbursement of reasonable expenses, including transportation, towing and lost wages or child care costs accumulated as a result of the recall.
The actual extra cost to Honda is $484 million based on a “recognition of Honda’s industry-leading efforts to repair affected vehicles and Honda’s ongoing comprehensive free rental or loaner car policy,” Honda spokesman Chris Martin said in an email. The funds will also support a program to try to convince Honda owners to get their vehicles repaired. More than 61% of Honda vehicle owners had gotten their Takata air bags replaced as of late June.
Takata pleaded guilty to criminal charges in the U.S. and filed for Chapter 11 bankruptcy protection in June, facing staggering repair costs and more than $1 billion in penalties. The company’s air bag inflators triggered the largest U.S. recall of all time, affecting more than 42 million vehicles and 19 automakers.