Volkswagen to pay over $56m in settlement with US owners for Takata airbag recall

The United States arm of Volkswagen has agreed to a US$42million (AU$56.75m) settlement for owners whose vehicles were equipped with faulty Takata airbags.

As reported by Reuters, documents filed with a District Court in Miami show the German manufacturer's settlement covered at least 1.35million vehicles in the United States alone, although there are no reports of Takata's airbag defects injuring or killing in any Volkswagens worldwide.

It is understood the settlement covers out-of-pocket costs for owners, rental car firms for example, lost wages and childcare costs – small change compared to the US$605m (AU$816m) which Honda has had to pay in a civil settlement to its owners, as well as those who have been injured or killed due to the failure.

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In the United States alone, at least 19 people have died due to faulty Takata airbags – with 16 of those occurring in Honda vehicles. Meanwhile two have been attributed to Fords – the Blue Oval has previously reached a US$299.1m (AU$403m) settlement with its customers.

Earlier this year, Volkswagen Australia won its Supreme Court case over a Takata airbag recall saga, initially brought up over the plaintiff believing the propellent chemical in his vehicle's airbags would degrade over time, causing them to malfunction or explode.

The court found the plaintiff could not prove his Volkswagen Passat was not of an acceptable quality when he purchased it, and he’d not suffered any actual loss or damage because a Takata airbag had originally been fitted in his vehicle.