Volkswagen’s U.S. unit has agreed to a $42 million settlement covering 1.35 million vehicles equipped with faulty Takata airbag inflators.
Documents filed in the U.S. District Court of Miami reveal that a large portion of the funds will be used to boost recall completion rates. VW joins seven other major car manufacturers to announce settlements related to the Takata airbag inflators in recent years.
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A total of 19 deaths in the U.S. have been attributed to faulty Takata airbag inflators that can rupture and sending metal fragments flying into the cabin. Of these, 17 deaths have occurred in Honda vehicles, which has already prompted the car manufacturer to reach a $605 million civil settlement with owners.
Of the 28 deaths reported worldwide, two have occurred in Ford vehicles and one in a BMW. Ford has previously reached a $299.1 million settlement with owners and BMW has agreed to a $131 million settlement, Reuters reports. No deaths have occurred in VW vehicles.
Volkswagen’s settlement covers rental car and out-of-pocket costs, including lost wages and childcare costs, that owners have faced when getting their vehicles repaired or while waiting for repairs. According to court documents, around 35 percent of the inflators in Volkswagen and Audi vehicles that have been or will be recalled have not been repaired.
