Takata Airbag Recall

As the number of potentially lethal Takata Corp. airbags continues to rise, U.S. senators held a congressional hearing earlier this week to address the status of the largest automotive recall in history. According to the findings of the hearing, around 21 million defective Takata airbags have been repaired or replaced. But that accounts for less than half of the 50 million recalled airbags, affecting approximately 37 million vehicles. And this does not take in to account the millions of airbags that are still expected to be added to the massive recall.

Elected lawmakers questioned the rate of repairs and the actions of both regulators and the 19 automakers affected by the recall. Earlier this year, Ford Motor Co. announced a second death from a ruptured Takata airbag, which occurred over the summer of 2017 in West Virginia. This most recent death raises the total number of fatalities connected to Takata airbags to 22 worldwide. In addition, there have been more than 200 reported injuries connected to the rupturing airbags.

More than a year ago, Takata agreed to plead guilty to criminal charges for concealing the extent of their faulty airbags and pay $1 billion to be distributed to affected individuals, the U.S. government, and the automakers. Six months later, the Japanese seatbelt and airbag maker filed for bankruptcy and is in the process of selling their business to Key Safety Systems, owned by Ningbo Joyson Electric Corp, located in China.

But in the United States the National Highway Traffic Safety Administration (NHTSA) took over the recall to ensure it was carried out to completion. Senator Bill Nelson, who serves on the Commerce Committee that held the hearing, does not believe the NHTSA is doing a satisfactory job.

“NHTSA still seems to be playing a game of regulatory whack-a-mole and twiddling its thumbs when it comes to actually enforcing the coordinated recall approach and benchmarks for automakers,” said Nelson. “Overall, these completion rates are disappointing—unacceptable—and remain a cause of great concern.”

Of the 19 affected automakers, Honda Motor Co. was Takata’s largest client. Honda claims to have replaced or repaired around 14 million of the 18.5 million recalled airbags.

In a February 22 press release, Attorney General Bill Schuette’s office announced a settlement between the attorneys general of 44 states and the District of Columbia, and TK Holdings, Takata’s USA subsidiary over defective airbag allegations.

The multistate investigation sprang from allegations that Takata hid safety issues associated with its airbag systems, which auto manufacturers installed in millions of vehicles.

“TK Holdings, Inc.’s parent company pled guilty to manipulating data and submitting false and misleading reports to auto manufacturers,” the press release stated. TK Holdings knew about the airbag ruptures in 2004 but failed to recall the airbag inflators or notify officials or the public of the dangerous implications until November of 2014.

According to the release, Takata has agreed to pay a $650 million civil penalty and reimburse the multistate for its investigative costs. In light of Takata’s Chapter 11 bankruptcy and the limited amount of funds Takata has, the multistate agrees to prioritize financial recovery to consumers over the company’s penalty.

The settlement agreement includes a number of stipulations Takata must abide by, including 1) not representing its airbags as safe for use unless reinforced by reliable evidence, 2) not falsifying or manipulating testing data, and 3) cooperating with automakers to ensure replacement airbags are quickly made available.

If you or your family member suffered injuries due to a defective airbag, contact our injury attorneys at Newsome Melton to discuss potential options for compensation: 888-808-5977.

On January 9, 2018, GM filed its third Defect Information Report (DIR) with the National Highway Traffic Safety Association (NHTSA) regarding its vehicles equipped with Takata airbags, according to GM’s annual Securities and Exchange Commission (SEC) report. Along with the DIR, GM filed a third petition for inconsequentiality, which has yet to be publicly released.

The third petition argues the same point as the second petition, which stated: “GM has petitioned the [NHTSA] for a decision that, because of differences in inflator design and vehicle integration, the equipment defect determined to exist by Takata is inconsequential as it relates to motor vehicle safety in the GMT900 vehicles, and that GM should therefore be relieved of its notification and remedy obligations.”

In other words, because GM alleges that it integrates the defective airbags into its automobiles in a unique manner, the NHTSA should not require GM to recall vehicles with Takata airbags. “We do not believe there is a safety defect at this time in any unrecalled GM vehicles within scope of the Takata DIRs,” GM stated in its SEC report.

GM also stated that its company-funded research “supported the belief that the vehicles’ unique design and integration mitigates against inflator propellant, degradation and rupture risk,” the underlying reasons behind the massive Takata airbag recall.

The DIRs and petitions involve various GMT900 vehicles including the following:

• Chevrolet Silverado 1500
• GMC Sierra 1500
• Chevrolet Silverado 2500/3500
• GMC Sierra 2500/3500
• Chevrolet Tahoe
• Chevrolet Suburban
• Chevrolet Avalanche
• GMC Yukon
• GMC Yukon XL
• Cadillac Escalade
• Cadillac Escalade ESV
• Cadillac Escalade EXT

The NHTSA has yet to rule on GM’s petitions, and the company does not have to recall any vehicles until the agency makes its ruling. If the NHTSA decides that GM must recall all vehicles with defective Takata airbags, GM estimates the company cost at $1 billion.

If you or your family member was involved in an accident that was caused by a defective auto part, contact our product liability attorneys at Newsome Melton to discuss your legal options: 888-808-5977.