Automakers settle claims over Takata air bags for $553M

|By:, SA News Editor

Four automakers including Toyota (NYSE:TM) agree to pay $553M to settle claims stemming from rupture-prone Takata (OTCPK:TKTDY) air bags, in the latest legal settlement in a long-running safety crisis linked to 11 deaths and ~180 injuries in the U.S. alone.

TM's share of the settlement costs is $278.5M, followed by BMW (OTCPK:BMWYY) at $131M, Mazda (OTCPK:MZDAY) at $76M and Subaru (OTCPK:FUJHY) at $68M; lawsuits against Honda, Ford and Nissan have not been settled.

The settlement applies to current and former owners and lessees of 15.8M vehicles to address lagging repairs and financial losses associated with the air bags, which risk exploding and spraying shrapnel.

The four automakers say they agreed to settle "given the size, scope and severity" of the Takata recall, but do not admit fault or liability.