In early November 2016, the National Highway Traffic Safety Administration assured the public that no matter what happened to Takata Corp, consumers would not bear the burden of the Takata recall. These authorities said that automakers would ultimately be responsible for any remaining costs. But now that Takata is sheltered by bankruptcy, will NHTSA’s declaration prove true?

Is the Latest Takata Settlement a Sign of Things to Come?

The Takata Corporation is now neck deep in both a buy out and a bankruptcy. The bankruptcy court has set up a creditor’s panel and a victim’s panel. These two groups will determine how much the airbag maker will have to pay back, but it is already clear that Takata won’t have the funds to pay every debt it has in full. Enter the automakers.

Last year, NHTSA said that automakers would pick up any slack Takata wasn’t able to handle, and they were right. In a class-action lawsuit covering the economic losses of U.S. consumers, Honda Motor Company has made an offer. The settlement covers owners of both Honda and Acura vehicles that were fitted with Takata airbags, but does not cover those who were injured by exploding airbag inflators. The settlement benefits include:

• A free rental car while waiting for the completion of repairs.
• Reimbursement of reasonable personal expenses like lost wages, towing, transportation or childcare expenses.
• Payments of up to $500.

The total of the settlement is $605 million, but it is estimated that Honda will spend another $484 million in extra efforts to repair Takata-affected vehicles. BMW, Mazda, Nissan, and Subaru have also struck similar deals, but there are still many vehicles left to be accounted for in this recall.

The product liability attorneys here at Metier Law Firm will continue to monitor this topic.