Airbag company fined over $200 million for way recall was handled

Airbag company fined over $200 million for way recall was handled

Officials say only about a quarter of affected vehicles have been repaired.

Safety regulators in the U.S fined Japanese company Takata Tuesday for the way the company handled a recall of airbag inflation devices that were involved in seven deaths in America. The company said the devices were up to standard in protecting those behind the wheel.

CBS News reports that Transportation Secretary Anthony Foxx said in an interview that the company, “built and sold defective inflators, refused to acknowledge the defect,” and gave false information, “putting millions of Americans at risk.”

The recall affects 23 million airbag inflators in about 19 million vehicles over 12 automakers. However, according to the National Highway Traffic Safety Administration, only about a quarter of affected vehicles have been repaired.

An agreement made between the National Highway Traffic Safety Administration and Takata requires the company to pay up to $200 million in fines, and agree to cease selling inflators that rely on an ammonium nitrate propellant. The propellant is cited as the cause for the injuries and deaths involving the airbags.

Takata is expected to pay $70 million of the fine in cash, with the other $130 million due if other terms of the agreement are not met or if additional Safety Act violations are found.

As part of the agreement, Takata will be under government monitoring for five years, and “dismissing some employees,” according to Foxx. The National Highway Traffic Safety Administration has resources available online for drivers to check if their vehicle is affected by the recall.

The website is expected to contain updates about the recall, recall lists, and information on the status of the ongoing investigation at Takata.

Be social, please share!

Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail