Takata to plead guilty for the airbag defect scandal

Major auto part maker Takata is set to plead guilty and pay a $1 billion settlement in a plea agreement over an airbag fault scandal.

It has been called one of the “largest and most complex safety recall” cases in history, with defects linked to 16 deaths worldwide, and a further 100 injuries reported.

The airbag’s defect can lead to a sudden explosion, shooting sharp metal fragments into the cars cabin. A safety device that’s intended to save lives has ended up costing them instead.

As well as the fines, there has also been a call for an independent monitor to be implemented.

Investigations found that the airbags utilises an ammonium Nitrate based propellant to inflate the bags, but without a chemical drying agent. This is suspected to be a symptom of Takata’s recent financial difficulties.

What this means is that environmental moisture, warmer temperatures, and age of the vehicle can lead to the defect that inflates the airbags in an improper way. The metal canister holding the bag is easily combustible and the chemically induced expansion can split the metal into small shards, shooting outwards. Needless to say, saving money by compromising on important safety features is not a smart move and hasn’t been taken lightly by regulators.

“Automotive suppliers who sell products that are supposed to protect consumers from injury or death must put safety ahead of profits,” – one lawyer has said.

Many Auto manufacturers have had to recall their cars due to the defective airbag and this may have a negative impact on manufacturer reputations. Now, a total of 3 million Ford vehicles with Takata airbags have been recalled over the world. Toyota had 543,000 vehicles recalled, including these models:

Several Lexus cars produced between 2006 and 2012 are also affected in the Takata recall.

Investigations have revealed that 2001-2003 Honda and Acura vehicles have a much higher risk of the defect exploding, and owners have been urged to take these vehicles to be checked and repaired ASAP.

Takata is one of the three main airbag makers in the world and this $1 billion pay-out could easily bankrupt them. Three top company executives have already been indicted for their role in the scandal. They were charged with conspiring to commit wire fraud as well as multiple counts of committing wire fraud. These three men allegedly discussed the defect and conspired to hide their wrongdoings by fabricating documents.