Revisiting Takata

March 28th, 2018

If you’ve been reading this blog regularly you’ve heard a bit about Takata. The company may not be a household name, but you’ve probably heard a bit about them. They’re responsible for one of the largest recalls in US history. They created airbags for over a dozen car manufacturers. These airbags were recalled in over forty million vehicles when it was discovered that they could inflate improperly and send shrapnel into the people they were supposed to be protecting from injury.

These issues caused Takata some serious legal issues. They have paid over 1 billion dollars in fines and they have been in bankruptcy. Fortunately, TK Holdings, the US division of Takata, has reached a resolution. The resolution has been approved by a bankruptcy judge and a a trust fund is being established to compensate those injured.

This fund, the Takata Airbag Individual Restitution Fund, will be run by special master Eric Green of Harvard. Several car manufacturers will be paying into the fund that will allow the fund to pay out millions to the hundreds of people who have been injured or killed as a result of the faulty devices.

The resolution agreement sets up funds with $125 million to compensate victims and $850 million to compensate automakers for the replacement installations, a process that is still ongoing and will continue probably for at least two more years.

Over forty million vehicles were affected by this recall. If you don’t know if your vehicle was one of them, check with your dealer. We hope you haven’t been personally affected by this, or any other recall of faulty automotive equipment. But if you have, give us a call.

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