🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Takata hit with daily fine on air bag probe as repairs lag

Published 20/02/2015, 21:48
© Reuters. Logo of Takata Corp is seen outside the company's headquarters in Tokyo
GM
-
F
-
STLAM
-
BMWG
-
HMC
-
TM
-
7201
-
7261
-
8058
-

By Doina Chiacu and Paul Lienert

WASHINGTON/DETROIT (Reuters) - U.S. regulators on Friday slapped Takata Corp <7312.T> with a $14,000 (9,094 pounds) per-day fine for failing to fully cooperate with a probe of its faulty air bags and revealed that a fraction of the 17 million cars recalled because of the problems have been repaired.

The Japanese parts supplier is still struggling to come to terms with the massive recall and investigation related to the air bags, which have been prone to rupture unexpectedly, spraying shrapnel into vehicle occupants.

Defective Takata air bag inflators - which activate the devices in case of collision - have been linked to at least six deaths and dozens of injuries, and have resulted in several lawsuits.

Takata failed to comply with two orders U.S. safety regulators issued last year requiring documentation and other material for a probe into the faulty air bags, according to Transportation Secretary Anthony Foxx.

The government is accusing Takata of dumping more than 2.4 million pages of documents on the National Highway Traffic Safety Administration without any guide to or explanation of the content.

"As you are well aware, NHTSA has repeatedly engaged Takata and asked for the company's explanation of the content of the deluge of documents that it has produced thus far," NHTSA said in a letter to Takata lawyer Steven Bradbury, explaining the reason for the fine, to be levied starting on Friday.

Takata said it "strongly" disagreed with NHTSA's characterization, adding that it had been meeting regularly with NHTSA engineers to identify the cause of the issues with the inflators.

In another sign of Takata's struggles to put the issue to rest, the U.S. safety regulator also said Friday that nearly 90 percent of the vehicles recalled because of defective Takata air bags were still unrepaired as of December 31.

NHTSA has urged owners of certain vehicles from Toyota Motor Corp (T:7203), Honda Motor Corp Ltd (T:7267), Mazda Motor Corp (T:7261), BMW AG (DE:BMWG), Nissan Motor Co Ltd (T:7201), Mitsubishi Motors Corp (T:8058), Subaru Co Ltd <9778.T>, Fiat Chrysler Automobiles (N:FCAU), Ford Motor Co (N:F) and General Motors Co (N:GM) to replace the air bags as soon as possible.

On Friday, Foxx also called on Congress to pass legislation requiring car rental agencies and used car dealers to fix safety defects in the vehicles they rent or sell.

© Reuters. Logo of Takata Corp is seen outside the company's headquarters in Tokyo

Senators John Thune and Bill Nelson on Friday urged Takata to help federal regulators. "We cannot tolerate delays or limited cooperation when people's lives are at stake," they said in a statement.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.