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American Honda To Compensate Dealers For Takata Airbag Recall Costs

American Honda Motor Co. announced that it would compensate its dealers for costs related to the extensive Takata airbag recall. The company issued a notice that it would pay the depreciation expenses for vehicles that dealers were unable to sell due to the Takata airbag recall. The notice also mentioned that the company would help dealers defray the costs associated with alterations to the dealerships’ sales floors due to the temporary suspension of vehicles included in the recall list.

Details of the Takata Airbag Recall

Reports of exploding airbag assemblies prompted several automakers to issue Takata airbag recall notices. Scientific studies showed that an ingredient used to inflate the airbags in an accident can become highly volatile in humid conditions. The ingredient could cause the airbag assembly to explode. The explosion can hurl plastic and metal shrapnel into the driver and front-seat passenger at lethal velocities. More than 29 million vehicles from ten leading auto manufacturers are listed in the voluntary Takata airbag recall.

Injury Reports Prompt Takata Airbag Recall

News reports of the injuries from the exploding airbag systems prompted calls for the Takata airbag recall. A study from the National Highway Traffic Safety Administration showed that at least ten deaths have been linked to the exploding airbag systems. An accident report from police in Florida had initially speculated that the driver whose throat had been sliced open had been a victim of homicide. An investigation into the accident concluded that her injuries came from flying debris, which sparked demands for the Takata airbag recall.

Honda Announces Trade-In Program For Takata Airbag Recall Vehicles

The statement mentioned that replacement parts for the affected airbag systems may not be available for several months. The company announced the launch of a “Trade-In Assistance program” for owners of vehicles on the Takata airbag recall list. The company stated that the program “will benefit both the dealers and, ultimately, owners of the affected vehicles.” A company spokesman told reporters that the Takata airbag recall compensation program is scheduled to start on March 28 and end on July 29.

Federal Regulations Could Affect Takata Airbag Recall Program

American Honda removed new vehicles affected by the Takata airbag recall from showroom floors due to federal law. The law requires that new vehicles under recall must have the necessary repairs completed before a customer can take delivery. For used vehicles on the Takata airbag recall list, the law does not make any such requirements. However, a Honda spokesperson told reporters that the company will continue its policy of requiring dealers to complete the needed repairs on used vehicles prior to sale.

Source: Automotive News

Know Your Rights in a Takata Airbag Recall Lawsuit

To find out how we can help you with a Takata airbag recall lawsuit, contact us today at 877-892-2797. Our friendly staff will ask a few questions about your case and connect you to an attorney who specializes in cases concerning the Takata airbag recalls. You can also fill out the “Confidential Evaluation” form at the top of this page.

NOTE: This blog post is a news story and does not constitute and endorsement of the Amaro Law Firm by any parties mentioned herein.