Tens of thousands of Arizonans will be see checks or gift cards worth from $50 to $150 arrive in the mail, as the result of a state settlement with Honda over defective airbags.
A $5 million settlement with American Honda Motor Co. and Honda of America Manufacturing Inc. over allegations of concealed safety issues related to defective Takata airbag systems in certain Honda and Acura vehicles was announced Wednesday by Attorney General Mark Brnovich.
The settlement provides $1.65 million in restitution for Arizona consumers, as well as a $2.13 million repair incentive program to encourage consumers to have their airbag systems repaired under Hondaβs free safety-recall program.
Honda used Takata airbag inflators that utilized phase-stabilized ammonium nitrate as a propellant in certain Honda and Acura model vehicles sold in the United States for model years 2001-2016.
The defective airbag inflators have the potential to rupture and launch metal fragments into the passenger cabin and have been blamed for 200 injuries and at least 15 deaths in the U.S., including two fatalities in Arizona, the attorney general said.
Under the settlement, more than 15,000 eligible Arizonans who initially purchased an affected Honda or Acura in Arizona between September 2012 and November 2015 will each receive a $100 check in restitution.
Cash-equivalent gift cards of $150 or $50 will be mailed to about 40,000 Arizona consumers with defective Takata airbags, but the cards can be activated only after a consumer takes his or her vehicle to a Honda dealership for free airbag replacement.
Whether consumers get a $150 or $50 gift card depends on the specific type of inflator used in their airbags.
Honda previously reached a settlement with a multi-state group, but Arizona chose not to take part because the settlement did not provide any restitution or incentives to get dangerous airbags fixed, Brnovich said.
The Arizona attorney general alleged that Honda should have warned consumers purchasing its vehicles about the airbag issues by September 2012, but consumers did not receive notice until November 2015, when federal regulators fined Takata $200 million. Takata filed for bankruptcy in June 2017.
Besides the restitution and gift-card incentives, Honda agreed to pay $650,000 for outreach to inform consumers of the recall, $100,000 to the state for other consumer outreach efforts and a $500,000 payment to the state.
Honda also agreed to refrain from deceptive or misleading advertising and set up a system for employees to report safety concerns to management.
