Home Business Takata and Honda Bid to End Lawsuit Rejected by Miami Court

Takata and Honda Bid to End Lawsuit Rejected by Miami Court


A bid by Takata and Honda to end a class action lawsuit representing millions of owners of cars with potentially faulty air bags has been rejected by a Miami court.

Air bag maker Takata along with other carmakers will continue to face the lawsuit that alleges that they violated anti-racketeering laws, district judge Federico Mareno ruled.

The companies have been moving quickly to settle US death claims.

Over 19 million US cars have been recalled since 2008 due to the air bags.Honda Takata air bag

The two compaies have agreed to undisclosed settlements for six of the eight deaths linked to ruptured Takata airbag inflators in Honda vehicles.

Takata’s air bag inflators use ammonium nitrate and can deploy with too much force, spraying metal shrapnel.

A Honda spokesman told Reuters that the Japanese auto giant had been working quickly to settle the claims and had worked in good faith to resolve the concerns of the families affected.

However, the judge ruled on December 2 that the lawsuit still stands.

The lawsuit claims that owners overpaid for the cars with the faulty air bags and that the value of those vehicles has been reduced by the recalls.

Globally, tens of millions of cars with Takata airbags have been recalled since 2008.

Honda – Japan’s third biggest automaker – has been the hardest hit with 24.5 million cars recalled – more than half the global total.

Last month, Honda announced that it would no longer use front air bag inflators made by Takata, after the equipment maker was fined $70 million by the US auto safety regulator.

Honda was Takata’s biggest air bag customer and made up about 10% of Takata’s global sales.