A total of 13 auto manufacturers will be required to contribute up to $AUD 164 million to compensate injuries caused by the Takata airbag scandal.
According to Reuters, the funds will also allow for the sale of Takata’s non-inflator business to Key Safety Systems, for $AUD 20 billion. This will once again allow for a steady supply of car parts to funnel back to automakers.
As part of the contribution, those injured in the scandal will cease their objections to the bankruptcy plan regarding TK Holdings (Takata's US unit).
A further $AUD 157 million will be put toward a secondary victim compensation fund, which was established by the US Justice Department in 2017.
One of the key manufacturers involved in the scandal, Honda, has instead opted to launch its own compensation fund. The company will not contest fault, allowing for full payments to the victims.
At least 22 deaths and hundreds of injuries worldwide are linked to the Takata inflators.