Car-makers settle local Takata lawsuits for $52m

Six car manufacturers including top-selling Toyota have agreed to pay $52 million to settle class action cases in the NSW Supreme Court accusing them of selling deadly Takata airbags.

As well as Toyota, the manufacturers who agreed to the deal at mediation include Lexus, Subaru, BMW, Honda and Nissan.

Separately, Volkswagen successfully defended a Takata class action in the NSW Supreme Court and was awarded damages.

However, the legal firm Quinn Emanuel representing the plaintiffs is expected to appeal Justice Hammerschlag’s decision.

The mediation decision has to be approved by the NSW Supreme Court but that is expected to be a formality.

Potential claimants will be notified by email and via newspaper ads to register for compensation.

Only once the registration process is completed will the total number of claimants be known and how much each will receive.

Reports there could be more than two million beneficiaries are thought to be too high.

All up, more than four million cars were recalled in Australia and more than 100 million globally to replace faulty exploding Takata airbags that have caused at least one local death and 33 globally.

The NSW Supreme Court class actions alleged that by importing vehicles fitted with defective airbags, the manufacturers failed to comply with the Trade Practices Act and Australian Consumer Law by engaging in misleading or deceptive conduct and unconscionable conduct.

The actions sought compensation for financial losses caused by the fitment of Takata airbags in terms of vehicle value, loss of use, money spent by the owner and distress, disappointment and anxiety.

Separate to the class actions, the Australian Competition and Consumer Commission (ACCC) has taken Mercedes-Benz to Federal Court for allegedly failing to comply with its obligations under the compulsory Takata recall.