Why BMW, Mazda, Subaru and Toyota Just Spent $553 Million to Benefit their Customers
BMW, Mazda, Subaru and Toyota are spending big bucks to help their customers. Why are they doing it? It’s because the Takata airbag recall is the largest action in the history of the auto industry and it affects more than 42 million vehicles in the US. The four automakers announced this week, they have reached an historic agreement to resolve economic loss claims in the Takata multi-district litigation (MDL) in the US.
BMW, Mazda, Subaru and Toyota are the first to agree to a settlement structure to fund consumer outreach, rental car/loaner programs and out-of-pocket cost reimbursement. The automakers have jointly agreed to provide a total of approximately $553 million for these activities which will go directly to benefit their customers.
What does it mean for consumers? The four automakers hope to improve recall remedy completion rates for the Takata airbag inflator issue still affecting millions of consumers, and there are other customer benefits. It’s good news for the customers of these automakers.
A special “Settlement Administrator” will be appointed to oversee these consumer outreach programs to reach the owners of affected vehicles. The program will be conducted in conjunction with the National Highway Traffic Safety Administration (NHTSA)’s Coordinated Remedy Program.
How consumers will benefit
The four automakers will make rental or loaner vehicles available upon request to eligible customers, as defined in the respective settlement agreements, and for whom parts are not available within 30 days. Customers could also get reimbursement of reasonable out-of-pocket expenses related to the Takata airbag inflator recalls. The four automakers also said, “costs related to class member notification, claims administration, attorneys’ fees and expenses, class representative awards, and any other costs” will also be covered under the proposed settlements.
BMW, Mazda, Subaru and Toyota have also agreed to offer a Customer Support Program (CSP) for vehicles covered by these proposed settlements. The program will provide the money needed for repairs and adjustments (including parts and labor) to correct defects in materials or workmanship in the Takata inflators contained in the affected airbag modules or any replacement inflators installed as part of the remedy. The agreements cover the four automakers’ vehicles already recalled or subject to any future recall for the Takata PSAN inflators. Go to Page 2.
Customers of BMW, Mazda, Subaru and Toyota will benefit directly from this historic agreement. Consumers can get more information by going to this website or you can call 888-735-5596. The four automakers also encourage consumers in the U.S. who own any vehicle, regardless of make, model or age, to log on to NHTSA’s recall website, to ensure that any open recalls are addressed immediately.
Photo credit: Subaru