The settlement addressed claims from the owners of almost 16 million recalled vehicles, and will resolve economic losses of vehicle owners and lessees, including reimbursing them the cost of replacement vehicles while waiting for the airbags to be fixed, the Telegraph reports.
A recall of vehicles fitted with the Takata airbags began in 2013, due to a safety defect which meant inflators could explode with excessive force and potentially launch shrapnel into cars.
The airbags are blamed for 11 deaths and more than 150 injuries, though further cases are currently under review.
Of the overall $553m settlement announced on Thursday, $278.5m will be paid by Toyota, $131m by BMW, $76m by Mazda and the remaining $68m by Subaru. The $553m settlement does not cover personal injury claims relating to the airbags.
In a joint statement, the four carmakers said they had agreed to settle “given the size, scope and severity of the Takata recall”, and said they were the “first to agree to a settlement structure to fund consumer outreach, rental car/loaner programs and out-of-pocket cost reimbursement”.
However, they did not admit liability or fault.
The settlement is subject to court approval from the US District Court for the Southern District of Florida.
Ford, Honda and Nissan have not yet settled lawsuits into their vehicle recalls.
Around 100 million of the Takata inflators are thought to have been recalled worldwide, across 19 carmakers.
Takata earlier this year was hit with a $1bn in criminal penalties to resolve an investigation into the inflators, after pleading guilty to criminal wrongdoing.