A group of 13 automakers will contribute as much as $130 million to compensate those injured by faulty Takata Corp air bag inflators as part of a deal to resolve the Japanese company’s bankruptcy, a U.S. plaintiffs’ attorney told Reuters. Victims of the faulty inflators will also be able to collect from a separate $125 million compensation fund created as part of a plea deal Takata entered with the U.S. Department of Justice early last year. As part of that plea, automakers will receive their share of an $850 million restitution fund. Rice said funds from the Justice Department settlement and the bankruptcy are likely to fall short of full compensation for injured drivers, but they will still be able to sue the car manufacturers. The one exception is Honda Motor Co, which agreed to create a trust to ensure injuries linked to its vehicles will be compensated in full, according to Rice. He said Honda also will not contest fault for the injuries. Last year, plaintiffs said an internal Honda email showed Honda was long aware of the risks of Takata air bags, the type of allegation that could have opened the way to punitive damages. Honda has said it was a victim of deception by Takata, and noted in a statement Tuesday that the $850 million fund created as part of the plea deal was meant to compensate automakers for Takata’s scheme. The 12 other carmakers that were involved in the settlement, including Ford Motor Co, Toyota Motor Co, General Motors Co and Volkswagen AG (VOWG_p.DE), have 18 months to opt into the trust, if they agree to compensate drivers in full. Until then, they will continue to defend personal injury and wrongful death lawsuits. They will be able to offset any judgements with payments made to claimants from the Justice Department fund and the bankruptcy. Automakers to provide up to $130 mln for Takata's U.S. settlement | Reuters Posted via the PriusChat mobile app.
