Honda Motor Co has agreed to pay a USD 85 million settlement to many US states over allegations that it hid safety failures by using the defective Takata airbags inflators in specific Honda and Acura vehicles sold in the US- as per the consent order, which has made public.
The recent settlement binds up an investigation into Honda's claimed failure to state consumers and regulators the problem related to the huge risk of burst in the installed frontal airbag systems in certain cars, which could give rise to the metal fragments to fly into the passenger compartments.
As per the New York Attorney General Letitia James, the frontal airbag systems were designed and manufactured by Takata Corp. The bursts have resulted in a minimum of 25 deaths and more than 300 injuries in the US.
The issue with Takata's products is that it has touched the mark of the largest string of automotive recalls in US history, with nearly 50 million inflators recalled. Around 100 million are being recalled globally.
In a prepared statement, Honda said that the now-bankrupt frontal airbag inflator system supplier Takata has claimed guilty in 2017 with the allegation of the federal criminal fraud charges for deceiving other automakers and Honda about the safety of its airbags system. Under the agreement of these civil settlements, Honda has not acknowledged any misdeeds.
The recent settlement would not only guarantee Honda to replaces all stay behind on defective airbags system on the road. However, the company takes certain action to fix any future defect is rigorously made public in the future to evade the type of danger.
The settlement terms were announced by James, involving attorney general from 48 states. However, when asked for comments, Honda did not respond immediately.
Honda has recalled approximately 12.9 million Acura and Honda vehicles equipped with defective airbag inflators since 2008.
Under a separate class action settlement, Honda customers are entitled to the restoration of the injuries ane damages, which had occurred as a result of the defective airbags system.
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