Honda dealerships will receive money for airbag recall losses

| Mar 11, 2016 | Car Accidents, Firm News

The Japanese automaker, Honda, says that it will be offering a compensation program to dealerships for financial losses suffered as a result of its massive Takata airbag recall last January. Honda and Acura dealerships throughout the country were forced to stop sales on close to 2 million new and previously owned cars. This caused enormous financial setbacks for the dealerships, while potentially saving American lives and preventing countless injuries.

Defective Takata-made airbags were included in numerous makes and models of vehicles, both foreign and domestic. However, it was later revealed that many of the airbag inflators made by Takata were dangerously defective and at risk of exploding. After an explosion, hot metal fragments are shot through the passenger compartments of vehicles, and in many cases worldwide, the explosions have been deadly.

While the recall of affected Honda vehicles was no doubt necessary, dealerships have been hit hard by the halt in sales. Honda announced that in addition to compensating for sales losses caused by the depreciation of vehicles, it will also compensate dealerships for the need to suddenly re-plan their showroom floors. The compensation plan will begin during the fourth week of March, but Honda said that it is still working on how it will organize its claim filing procedures.

Dangerous Takata airbags were included in so many makes and models of vehicles in Virginia, the United States and throughout the world, that it should cause anyone injured by an airbag to wonder whether his or her injury was caused by a defective product. Fortunately, by speaking with an experienced Virginia personal injury attorney, people injured by airbags can determine whether or not their injuries warrant filing a personal injury claim for financial damages against the auto manufacturer, auto dealership and/or Takata itself.

Source: Business Times, “Honda to compensate US dealers for losses over air bag recalls,” March 10, 2016

FindLaw Network