Senators Ask NHTSA to Ensure Takata’s Accountability in Massive Air Bag Recall

U.S. senators Richard Blumenthal and Edward Markey, worried about Takata Corporation’s ability to complete its recall of defective air bag inflators, have called on the National Highway Traffic Administration (NHTSA) for guidance about holding Takata accountable if its U.S. subsidiary declares bankruptcy.

In a letter to NHTSA, Blumenthal and Markey wrote, “We have concerns about Takata’s financial solvency, which is now at risk … and that as a result, consumers could be left with defective airbags that no one will be forced to fix,” Reuters reports.

Last week, NHTSA announced hefty fines for Takata, as well as an accelerated schedule for replacing the faulty Takata air bag inflators. The defective inflators can cause the air bags to deploy explosively, sending shrapnel into the car’s passenger compartment, and have been linked to at least eight deaths and numerous injuries. Regulators have ordered Takata to phase out the use of ammonium nitrate propellant, Reuters reports. The air bag recall is one of the biggest automotive recalls in U.S. history.

In addition to the $70 million penalty already levied against Takata, the company could be fined up to $130 million if it fails to meet the recall schedule. A list of recalled makes and models can be found on the NHTSA web site. Vehicle owners can enter their car’s Vehicle Identification Number (VIN) to determine if their particular vehicle is included in the recall.

A dozen automakers, including Honda, Toyota, and Nissan, have stopped using Takata air bag inflators in their cars, Reuters reports, resulting in a drop in revenue for the company. The senators are concerned that the loss of business combined with penalties and recall costs could “overwhelm the company and lead Takata Corporation to bankrupt its U.S. subsidiary,” the senators wrote to NHTSA. Blumenthal and Markey asked NHTSA administrator Mark Rosekind how the federal government can assure that replacement air bag inflators will be available for affected U.S. car owners and how costs of the recall and further penalties would be handled in the event of a bankruptcy. NHTSA officials were not immediately available for comment, Reuters reports.

 

 

from Parker Waichman http://www.yourlawyer.com/blog/senators-ask-nhtsa-to-ensure-takatas-accountability-in-massive-air-bag-recall/