U.S. Slaps Fine On Takata For Non-Compliance

Takata

Japanese airbag manufacturer Takata has been hit with a fine of $14,000 per day for failing to cooperate with a government probe into faulty airbags.

The U.S. transportation secretary announced the punishment on Friday, stating that Takata (7312.T) did not comply with two orders issued by the National Highway Traffic Safety Administration (NHTSA), requiring the company to provide documentation related to the investigation, writes Doina Chiacu of Reuters.

Takata remains uncooperative

“Safety is a shared responsibility and Takata’s failure to fully cooperate with our investigation is unacceptable and will not be tolerated,” said Transportation Secretary Anthony Foxx. “For each day that Takata fails to fully cooperate with our demands, we will hit them with another fine.”

The NHTSA claims that at least 7.8 million cars are considered at risk of having defective Takata airbags. The investigation is trying to find out whether Takata airbag inflators manufactured between 2000 and 2007 were not sealed properly.

If the air bags inflate with too much force they could cause metal shrapnel to fly in the direction of vehicle occupants, a phenomenon which is currently linked to 4 deaths and has led to several lawsuits being filed.

The U.S. government is accusing Takata of flooding the NHTSA with almost 2.5 million pages of documents, without providing any information as to their content. The agency accuses Takata of wasting its time and resources, and accused the company of being uncooperative.

“As you are well aware, NHTSA has repeatedly engaged Takata and asked for the company’s explanation of the content of the deluge of documents that it has produced thus far,” NHTSA wrote to Takata lawyer Steven Bradbury.

Millions of vehicles recalled

Owners of particular models of Toyota, Honda, Mazda, BMW, Nissan, Mitsubishi, Subaru, Chrysler, Ford and General Motors vehicles have been encouraged to replace their airbags.

The defective airbags have caused the recall of over 16 million vehicles worldwide since 2008. The transportation secretary has also urged Congress to pass a law which would require car rental companies and used-car dealers to be responsible for fixing defects in the vehicles that they handle.

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About the Author

Brendan Byrne
While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. To contact Brendan or give him an exclusive, please contact him at [email protected]

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