Ford agrees to $299.1 million settlement

Date: 19 JUL 2018posted by Car Rentaledited by WinX

Court documents filed in a federal court showed Ford Motor Co agreed to a economic loss settlement of $299.1 million covering at least 6 million US vehicles with potentially faulty Takata air bag inflators. The settlement covers several forms of economic damages due to the faulty inflators which includes claims that the vehicles were inaccurately represented to be safe, buyer had overpaid for cars with defective or substandard air bags and faced out of pocket costs to deal with the recalls. There has been at least 23 deaths worldwide linked to the rupturing of faulty Takata air bag inflators. The scandal forced the largest auto industry safety recall in history, involving about 100 million inflators within 19 major automakers.

At least 290 injuries worldwide are also linked to Takata inflators which can explode, causing metal shrapnel inside the cabin of the vehicle. As of to date, 21 deaths have been reported in Honda vehicles and two in Ford vehicles. Ford said in a statement it remains "focused on working with our customers to get their vehicles repaired." The settlement will reimburse out-of-pocket costs, including lost wages, child care costs, and additional costs to get the vehicles repaired. Under the settlement, Ford will also provide free rental or loaner vehicles to owners of recalled vehicles who are awaiting repairs when parts are not available.

Almost 30 million US vehicles remain unimpaired in the recall. Honda Motor Co, Toyota Motor Corp, Nissan Motor Co, Mazda Motor Corp, Subaru Corp and BMW AG all have agreed to similar settlements worth of $1.2 billion combined. Takata pleaded guilty to felony charge of wire fraud to resolve a US Justice Department investigation and agreed to pay $1 billion in the settlement last year. This led the company to file for bankruptcy protection in June 2017. In April, auto components maker Key Safety Systems agreed to a $1.6 billion deal to acquire Takata. The merged company has come to be known as Joyson Safety Systems and is a subsidiary of Ningbo Joyson Electronic Corp.

Leave a comment

Please enter your full name

Please enter your question