Air Bag Manufacturer Takata Faces $70 Million Fine for Defective Air Bags

Posted By Regan Zambri Long, PLLC || 15-Nov-2015

The National Highway Traffic Safety Administration (NHTSA) announced recently that it has imposed a $70 million fine on airbag manufacturer Takata for producing defective air bag assemblies that have led to eight known deaths, over 100 confirmed injuries, and a recall affecting 19 million U.S. vehicles. The fines could include an additional $130 million if Takata does not comply with the terms of the consent order, according to a recent article in the Wall Street Journal.

Under the terms of the settlement agreement, Takata will pay the $70 million fine in six installments over the next five years. If the company does not meet the terms of the settlement agreement or violates another U.S. federal law, the total size of the fine will increase to $200 million.

The $200 million total makes the fine levied on Takata the largest civil penalty ever imposed for a violation of the Motor Safety Act, according to a NHTSA press release. The size of the fine is related not only to the fact that Takata placed a dangerous product on the U.S. market, but also to the fact that the company initially denied the problem, offered incomplete or manipulated data, and was allegedly less than forthcoming in offering details about the product. Takata's actions have caused automaker Honda to officially announce that it was severing its relationship with the airbag manufacturer.

The defect can cause the airbag's inflater to explode, throwing shrapnel into the vehicle's interior and causing serious injuries or death.

Missed the latest news about the Takata air bag recall? Catch up here: Expanded Takata Airbag Recall Goes National - New Information.

Our Washington D.C. auto accident attorneys would be happy to provide a thorough consultation about your case. Call or email us today to explore your strategic option

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