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4 automakers agree to $553M settlement of Takata airbag claims

WASHINGTON (Reuters) - Four automakers agreed to a $553 million settlement to address class-action economic loss claims covering owners of nearly 16 million vehicles with potentially defective Takata airbag inflators, according to court documents filed on Thursday. Toyota's share of the settlement costs is $278.5 million, followed by BMW at $131 million, Mazda at $76 million and Subaru at $68 million. According to a press release from Plaintiffs' Committee for Takata Airbag Product Liability Litigation, the funds for the settlement are aimed at getting more cars with faulty airbags fixed. At the time of writing, Toyota had the greatest recall completion percentage of 31.89 percent followed by Subaru with 31.37 percent. Mazda has completed repairs on 18.16 percent of affected cars, and BMW brings up the rear with 16.48 percent completion. Some settlement funds will go to an outreach campaign to increase awareness, while other funds will be used to reimburse people for any costs accrued to get their cars fixed. These costs can include rental cars, child care, lost wages, or any other reasonable costs associated with bringing in a vehicle for repairs. Furthermore, a customer support program will be funded with settlement money to handle any additional repairs or adjustments that could become necessary in the 75,000 miles following the airbag replacement. Lawsuits against Honda, Ford and Nissan have not been settled, lawyers said. Takata inflators, which can explode with excessive force and unleash metal shrapnel inside cars and trucks, are blamed for at least 16 deaths and more than 180 injuries worldwide. The safety defect has prompted recalls worldwide of about 100 million inflators by more than a dozen major automakers. Reporting by David Shepardson, additional details by Autoblog's Joel StocksdaleRelated Video: Government/Legal BMW Mazda Subaru Toyota

Mazda planning not one but two new crossovers for U.S.

Mazda has already announced plans to unveil a brand new crossover at the Geneva Motor Show, but it turns out there's another one in the pipeline set to satiate the appetites of a crossover-mad U.S. market. Speaking at the Chicago Auto Show, Mazda North America CEO Masahiro Moro told reporters the brand has another model planned for production at the $1.6 billion plant under construction with joint-venture partner Toyota in Huntsville, Ala. It'll be "a new crossover SUV which is exclusively designed for the North American market," Automotive News quoted Moro as saying. While it'll be a different product from the one debuting next month in Geneva, the two vehicles will share some architecture. The company is reportedly still finalizing the concept for it. Currently, Mazda sells three crossovers in the U.S.: the subcompact CX-3, the compact CX-5 and the larger CX-9. Together, the three vehicles, which constitute half of the tiny automaker's vehicle lineup, posted sales of 195,778 for 2018, up 15.8 percent from 2017. They accounted for nearly two-thirds of the brand's total vehicle sales of 300,325. Production is expected to start at the new Alabama plant in mid-2021, Moro said, and add capacity for 150,000 units of crossovers. The plant is expected to employ up to 4,000 workers with a total capacity of 300,000 vehicles a year. Toyota plans to build the Corolla there alongside Mazda's crossovers. Mazda last week released the teaser pic shown above of its forthcoming new crossover headed for Geneva. It could be the next and slightly larger version of the CX-3, which will use the Skyactiv Vehicle Architecture that also supports the new Mazda3. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Takata airbag recall spreads to China with 42k Mazda sedans

The scope of the problem with the faulty airbag inflators from Takata continues to broaden and is now reaching China, as well. Mazda is recalling 42,732 Mazda6 units there, produced by its local joint venture partner China FAW Car Company, to replace the front passenger airbags. It comes as part of Mazda's recall of nearly 160,000 vehicles worldwide, including about 34,600 in the US, according to Reuters.
This is the same problem that caused seven automakers in the US to recall an estimated 2.1 million vehicles in late June. The airbag inflators can potentially explode instead of deploying the airbag, which hampers the bag's inflation. In some cases occupants are also hit by the metal shrapnel, which can cause further injuries. In the US, Mazda is repairing the 2003-2007 Mazda6 (pictured above), 2006-2007 Mazdaspeed6, 2004 MPV and 2004-2008 RX-8 originally sold in or currently registered in Florida, Puerto Rico, and Hawaii.
This is hardly the first instance of this issue. Since 2001, there have been 20 recalls tied to the exploding airbags supplied by Takata. The problem is possibly linked to the propellant in the inflators, but there's no conclusive evidence of that yet. Most of the automakers in the US limited the most recent recalls only to a few humid states because moisture potentially exacerbated the problem.