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More lawsuits filed against Honda, Takata over air bags

Published 21/10/2014, 21:40
© Reuters A man walks behind a sign board of Japanese auto parts maker Takata Corp's Annual General Meeting in Tokyo
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By Ben Klayman

DETROIT (Reuters) - The recall crisis is growing involving Takata-made air bags exploding with too much force and spraying vehicle occupants with metal shrapnel, with two more lawsuits filed over accidents in older Honda cars.

News of the lawsuits came a day after Toyota Motor Corp (T:7203) on Monday recalled 247,000 vehicles in the United States because of potentially defective air bags made by Takata Corp <7312.T>. Also on Monday, U.S. safety regulators urged consumers affected by similar recalls to have their cars' air bags replaced as soon as possible.

That news led Takata's shares to fall 23 percent on Tuesday in Tokyo, the stock's biggest one-day drop ever. The shares have declined 44 percent so far this year.

Meanwhile, the U.S. House Energy and Commerce Committee on Tuesday said it was seeking information from the National Highway Traffic Safety Administration (NHTSA) and automobile manufacturers concerning Takata's air bag defects.

More than 4 million cars produced by nine automakers including Toyota, Honda Motor (T:7267) and Fiat Chrysler Automobiles' (MI:FCHA) Chrysler Group are affected by regional recalls that started in June. They began in certain high-humidity areas of the United States after the NHTSA started investigating reports of air bag explosions in Florida and Puerto Rico.

NHTSA is investigating whether Takata air bag inflators made between 2000 and 2007 were improperly sealed. The issue of the bags inflating with too much force has been linked to four deaths and resulted in several lawsuits.

More than 16 million vehicles globally have been recalled for defective Takata air bags since 2008.

The two accidents resulting in lawsuits against Honda and Takata both took place in Florida.

A Honda spokesman declined to comment on both lawsuits because they are pending. A Takata spokesman referred questions to Honda.

According to an accident report and lawsuit filed in July in a Florida state court, Corey Burdick, 26, was driving his 2001 Honda Civic in Eustis, Florida on May 29 when he was involved in an accident with another vehicle.

The accident report said an eye injury Burdick suffered was "possibly caused by the air bag deployment." The lawsuit, which is seeking damages above $15,000 (9,311 pounds), said "shards of metal were propelled through the air bag's fabric and struck Corey Burdick in the eye, resulting in disfigurement, impaired vision and other severe permanent injuries."

In the second accident, Stephanie Erdman, a then 28-year Texan stationed at a military base in Florida, was driving her 2002 Civic in Santa Rosa County when she was involved in an accident with another vehicle on Sept. 1, 2013, according to an accident report and lawsuit.

The lawsuit described how "shards of metal, like shrapnel, were propelled towards Stephanie Erdman ... striking (her) in the face and right eye." It included a picture of her bloody face and the metal lodged in her eye.

© Reuters. A man walks behind a sign board of Japanese auto parts maker Takata Corp's Annual General Meeting in Tokyo

Erdman's lawsuit, which is seeking more than $1 million in damages, was filed in May in Texas, where she bought the car.

(Additional reporting by Maki Shiraki in Tokyo and Jessica Dye in New York; Richard Cowan in Washington; Editing by Chris Reese and Grant McCool)

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