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Posts Tagged ‘Takata airbag scandal’

Takata Victims Pursuing Legal Action Against Five Automakers

Honda, Nissan, Toyota, BMW and Ford all named in lawsuits.

by on Feb.28, 2017

Takata victims file claiming five automakers knew about airbag defect, but used them anyway.

As Takata pleaded guilty and agreed to pay a $1 billion in restitution, compensation and fines, one issue remains in doubt: What role did the automakers play?

If you listen to the car companies, they are victims as well. In fact, the settlement agreement shows them receiving $825 million due to Takata’s carelessness.

Product News!

The airbag inflators can explode with too much force in certain conditions, hurling shrapnel into the vehicle cabin. The result is 16 deaths and nearly 200 injuries worldwide. It forced the largest recall in U.S. history: 42 million vehicles. (more…)

Takata to Plead Guilty, Set up Victims’ Fund

Three executives face criminal trial but remain out of reach.

by on Feb.27, 2017

At least 16 people are known to have been killed due to faulty Takata airbags.

Embattled Japanese auto supplier Takata Corp. is expected to formally enter a guilty plea in Detroit federal court on Monday, fulfilling the requirements of a deal with the U.S. Justice Department stemming from the cover-up of a deadly airbag defect.

The settlement will see Takata pay $1 billion to settle the case, including a $25 million fine, while also setting up a $125 million compensation fund for victims and family members. So far, at least 16 people are known to have been killed by the company’s malfunctioning airbags, with over 100 injured.

Breaking News!

The government also indicted three Takata executives for allegedly falsifying test reports in an effort to cover up the airbag problem. Dozens of different automotive brands have been impacted by the defect which has led to the recall of more than 42 million vehicles in the U.S. alone.

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GM Paying $1M SEC Fine to Settle Ignition Switch Scandal

Fine resolves matters at the federal level, but the case still drags on.

by on Jan.18, 2017

A replacement for the faulty GM ignition switches.

General Motors is hoping to begin closing the door on its ignition switch scandal with the payment of a $1 million penalty to the U.S. Securities and Exchange Commission.

The SEC was one of the many government agencies to pursue GM after the maker was found to have improperly responded to internal data showing a faulty switch design could cause some of its vehicles to shut off unexpectedly. The defect has been blamed for at least 124 deaths and hundreds of injuries. The securities probe focused not on safety but whether improper accounting kept the company from properly disclosing the potential financial impact of the defect to shareholders.

We're Your Automotive Watchdog!

The fine is relatively modest when compared to the more than $2 billion the defect has so far cost the largest of the Detroit automakers. That includes a $900 million settlement GM reached with the U.S. Justice Department to close a criminal investigation in September 2015. The automaker also paid a $35 million penalty to the National Highway Safety Administration.

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Takata CEO Outlines Plans to Resign

“I want to pass the baton.”

by on Jun.28, 2016

Takata CEO Shigehisa Takada has apologized for the airbag scandal but will soon step down.

The CEO of safety systems supplier Takata plans to resign, a move that could help the tarnished Japanese manufacturer raise the capital necessary for its survival.

Takata CEO Shigehisa Takada has come under intense fire in the wake of revelations about the company’s airbag systems, which have been linked to the deaths of at least 14 people worldwide, with more than 100 other injured. That has triggered the largest recall in U.S. automotive history, so far affecting more than 40 million vehicles.

Safety News!

Takata has been struggling to supply enough new airbag inflators to replace those under recall, and its cash crunch has made it difficult to ramp up production. The company has been looking at restructuring opportunities that might include finding a buyer. (more…)