More than 4 million Nissan owners are entitled to $500 as a part of a faulty air bag settlement by the Japanese vehicle manufacturer. Though Nissan claimed that it was "not admitting" to a fault, the settlement is similar to the ones that other automakers were granted- "preliminary approval to settlements" amounting to $553 million.
Nissan Motor and its United States unit will pay nearly US$98 million (S$1.3 billion) to settle economic-loss claims tied to Takata air bag recalls.
TK Holdings Inc, the company's primary US unit, filed for Chapter 11 protection in June along with 11 other USA and Mexican entities, coinciding with Takata Corp's bankruptcy filing in Japan.
At least 18 deaths and 180 injuries worldwide have been tied to the defect that led the Takata Corporation to file for bankruptcy protection in June. Honda and Ford have not yet reached a settlement.More news: Starbucks Corporation (SBUX) hit its 1-Year High price on 06/05/17
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The inflators, which fill up air bags in the event of a crash, can explode with too much force and spew metal shrapnel.
As of June, about 38 percent of the recalled inflators have been replaced, the USA government reports.
The agreement, which requires court approval, does not cover claims of personal injury or property damage.
As part of the Justice Department settlement, Takata agreed to establish two independently administered restitution funds: one for $850 million to compensate automakers for recalls and a $125 million fund for individuals injured by its airbags who had not already reached a settlement.