Honda Pays $85 Million as Settlement for Faulty Airbags in Cars sold in the US
Two US-based units of Honda Motor Company 'Honda and Acura' has agreed to pay $85 million to settle investigations into the automaker’s use of defective Takata airbag inflators. With multiple states over allegations that it hid safety failures in the airbags of certain Honda and Acura vehicles sold in the U.S., The settlement ties up an investigation into Honda's alleged failure to inform regulators and consumers of issues related to the significant risk of rupture in the frontal airbag systems installed in certain cars, which could cause metal fragments to fly into the passenger compartments. Also Read Toyota Motor and Amazon Web Services Expand Global Collaboration
The systems were designed and made by Takata Corp. The ruptures have resulted in at least 14 deaths and more than 200 injuries in the U.S., according to New York Attorney General Letitia James. "Today's settlement will not only guarantee Honda replaces all remaining defective airbags on the road but that the company takes specific actions to ensure any future defect is thoroughly made public in the future to avoid this type of danger,” James said in a prepared statement. Read more about why Japan's Mitsubishi Motors may Shut Factory in Gifu (Central Japan)?
Honda Failed to Notify both Regulators and Consumers:
The settlement brings an end to the numerous state probes into allegations that Honda failed to notify both regulators and consumers of its use of defective airbag inflators. It was found that long-term exposure to heat and humidity can cause the defective airbag inflators to explode when deployed, sending metal fragments flying into passengers and potentially causing harm. Know why Uber CEO Threatens Future Shutdown in California?
Will Honda Upgrade its Product Safety Procedures?:
Honda confirmed that it had reached civil settlements with 46 states and the District of Columbia, as well as three other US territories. As part of the settlement, American Honda Motor Company and Honda of America agreed to upgrade their product safety procedures related to frontal airbags. Here is the smart checklist for effective fleet & vehicle maintenance
Recalling the Cars with Defective Airbags:
The automaker has recalled nearly 14 million vehicles in both the US and Canada that had been fitted with the faulty airbag inflators since 2008. Honda has recalled approximately 12.9 million Honda and Acura vehicles equipped with defective inflators since 2008. Under a separate class action settlement, Honda customers are entitled to restitution for damages or injuries that occurred as a result of the defective airbags. Read also UK Leadership on Autonomous Vehicles held back by Infrastructure: KPMG
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