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4 automakers agree to $553M settlement of Takata airbag claims

WASHINGTON (Reuters) - Four automakers agreed to a $553 million settlement to address class-action economic loss claims covering owners of nearly 16 million vehicles with potentially defective Takata airbag inflators, according to court documents filed on Thursday. Toyota's share of the settlement costs is $278.5 million, followed by BMW at $131 million, Mazda at $76 million and Subaru at $68 million. According to a press release from Plaintiffs' Committee for Takata Airbag Product Liability Litigation, the funds for the settlement are aimed at getting more cars with faulty airbags fixed. At the time of writing, Toyota had the greatest recall completion percentage of 31.89 percent followed by Subaru with 31.37 percent. Mazda has completed repairs on 18.16 percent of affected cars, and BMW brings up the rear with 16.48 percent completion. Some settlement funds will go to an outreach campaign to increase awareness, while other funds will be used to reimburse people for any costs accrued to get their cars fixed. These costs can include rental cars, child care, lost wages, or any other reasonable costs associated with bringing in a vehicle for repairs. Furthermore, a customer support program will be funded with settlement money to handle any additional repairs or adjustments that could become necessary in the 75,000 miles following the airbag replacement. Lawsuits against Honda, Ford and Nissan have not been settled, lawyers said. Takata inflators, which can explode with excessive force and unleash metal shrapnel inside cars and trucks, are blamed for at least 16 deaths and more than 180 injuries worldwide. The safety defect has prompted recalls worldwide of about 100 million inflators by more than a dozen major automakers. Reporting by David Shepardson, additional details by Autoblog's Joel StocksdaleRelated Video: Government/Legal BMW Mazda Subaru Toyota

New autonomous testing ground in Michigan will help battle bad weather

If one of the big weaknesses of autonomous vehicles is their ability to navigate in the snow, consider this a trial by fire. The American Center for Mobility says it has opened its $110 million driverless car testing facility on the site of a former General Motors assembly plant in Michigan, with Toyota and auto supplier Visteon the first to begin testing this week. The ACM proving ground is a 500-acre site at historic Willow Run in Ypsilanti Township, near Ann Arbor. It's one of 10 sites designated by the U.S. Department of Transportation as pilot proving ground sites to test AV technologies. It features a variety of simulated environments to test driverless cars, including a 2.5-mile highway loop, two double overpasses, intersections, roundabouts and a 700-foot curved tunnel. It also opens just as the region experiences a series of snowstorms and the first frigid temperatures of the season. That ability to test autonomous vehicles in a wide variety of weather conditions is important, as autonomous vehicle sensors have struggled to handle cold, wet and snowy conditions. Google parent Alphabet in October said its Waymo division was expanding its winter testing operations to Michigan, making it the sixth state where it's testing its driverless car systems. In a Medium blog post, Waymo CEO John Krafcik wrote that "This type of testing will give us the opportunity to assess the way our sensors perform in wet, cold conditions. And it will also build on the advanced driving skills we've developed over the last eight years by teaching our cars how to handle things like skidding on icy, unplowed roads." Waymo also opened a development center in suburban Detroit in 2016, working with Fiat Chrysler to integrate its autonomous technology into Chrysler Pacifica hybrid minivans. Visteon began testing and validating its DriveCore autonomous driving platform to evaluate algorithms, vehicle-to-vehicle and vehicle-to-infrastructure technology and other systems. Toyota used the facility Wednesday to begin orientation and driver training. ACM has so far secured $110 million to construct the first two phases from founders Ford, Hyundai America Technical Center, Toyota and Visteon, and says it expects to announce more investment soon.

Legal approach in $1.2 billion Toyota settlement could impact handling of GM recall cases

In the past, if an automaker did something wrong, they were usually prosecuted by the US government through something called the TREAD Act. Short for Transportation Recall Enhancement, Accountability and Documentation Act, it basically requires automakers to report recalls in other countries, along with any and all serious injuries or deaths, to the National Highway Traffic Safety Administration.
Failing to report or attempting to conceal anything when there's been a death or serious injury constitutes a criminal liability. The idea is that this setup puts the onus on manufacturers to keep NHTSA apprised of safety related issues before they become a problem in the US, thereby allowing the regulator to better protect consumers.
In theory, it sounds like a relatively airtight set of rules for dealing with misbehaving automakers. That didn't stop the US Department of Justice from ignoring TREAD in its prosecution of Toyota's handling of the unintended acceleration recall, though. The result of this new approach, which charged Toyota with wire fraud, was a $1.2 billion settlement. Now, the wire-fraud approach could be used for the expected case between the US government and General Motors, based on the statements of Attorney General Eric Holder, who specifically mentioned "similarly situated companies" when discussing Toyota.