A logo of Takata Corp is seen through a car window outside the company's headquarter building in Tokyo. (Photo : Reuters)
United States safety regulators announced on Tuesday that it is levying a $70 million penalty to Taka for failing to properly discount the defects discovered in its airbag products. Reports claim that the penalty could climb up to $200 million if Takata will not comply with the agreed terms and conditions issued by the National Highway Traffic Safety Administration.
In a message picked up by CBS News, Transportation Secretary Anthony Foxx said, "For years Takata has built and sold defective inflators, refused to acknowledge the defect, and supplied inaccurate and misleading information, putting millions of Americans at risk. American drivers should not have to worry that a device designed to save their life might actually take it."
The massive recall due to Takata's airbag problem has plagued more than 19 million vehicles from 12 car manufacturers. On the other hand, Foxx told reporters that the figure could potentially rise and added that repairs on the damages are quite slow. The National Highway Traffic Safety Administration released a report in October stating that less than a quarter of all the recalled vehicles were repaired.
The airbag issue has had massive impact on Takata's business. Recently, fellow Japanese company Honda Motor Co. said that it will no longer use Takata-made airbag inflators, according to Reuters. Takata claims that Honda is its biggest airbag customer and the decision by the latter to leave will seriously hurt the company.
Eight deaths and more than 100 injuries have been linked to the defective Takata airbag issue. Safety regulators claim that Takata airbag's metal casing can rupture violently during a crash and can send metal shards flying into the passenger cabin potentially causing injury or even killing those inside the car.
