{"id":892,"date":"2017-08-18T11:23:36","date_gmt":"2017-08-18T10:23:36","guid":{"rendered":"https:\/\/www.groupactionlawyers.co.uk\/blog\/?p=892"},"modified":"2017-08-18T11:23:36","modified_gmt":"2017-08-18T10:23:36","slug":"takata-files-bankruptcy-exploding-airbag-scandal","status":"publish","type":"post","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/takata-files-bankruptcy-exploding-airbag-scandal","title":{"rendered":"Takata files for bankruptcy as a result of exploding airbag scandal"},"content":{"rendered":"

The Takata airbag recall<\/a> is one of the biggest automotive recalls in history. The company started producing airbag inflators in the late 1990s, and around the year 2000, Takata discovered some of their airbag inflators weren’t functioning properly, and even found some had erupted during tests.<\/p>\n

The first recorded incident reportedly happened in May 2004 where a driver’s side bag ruptured in a Honda Accord. It was not until half a decade later that Honda recalled more than 500,000 airbags for the defect to be rectified, and regulators didn’t start investigations until June 2014.<\/p>\n

Now, the scale of the issue has resulted in the Japanese manufacturer filing for bankruptcy.
\n<\/p>\n

What’s the problem?<\/h2>\n

The scandal surrounding the airbag rupturing has been a long-standing problem. The issue is that while drivers are in their vehicle, the airbag can explode on deployment, propelling sharp shrapnel in to the cockpit. As of June this year, the defect has reportedly caused 17 deaths and more than 180 injuries worldwide.<\/p>\n

Tens of millions of recalls<\/h3>\n

It was not until 18th<\/sup> May 2015 that the airbag manufacturer agreed to recall 32 million airbag inflators fitted in many brands, including BMW, Fiat Chrysler, Daimler, Ford, General Motors, Mazda, Mitsubishi, Nissan, Subaru and Toyota. A year later, the airbag manufacturer issued a further recall of 35 to 40 million inflators, resulting in one of the largest automotive recalls in history.<\/p>\n

Penalties<\/h3>\n

In February this year, Takata pleaded guilty in criminal courts for fabricating test data to hide the airbag defect, and pleaded guilty to wire fraud by providing the false test data.<\/p>\n

They were hit with a $1 billion (\u00a3764 million) penalty.<\/p>\n

Chief Financial Officer of Takata, Yoichiro Nomura, expressed the company’s deep regret:<\/p>\n

“…the actions of certain Takata employees to undermine the integrity of the company’s testing data and reporting to customers were deeply inappropriate.”<\/em><\/strong><\/p><\/blockquote>\n

Mr Nomura confirmed that some employees knew of the defects as early as 2000, but failed to act upon the information.<\/p>\n

Bankruptcy<\/h3>\n

The scandal has driven the airbag manufacturer to the brink of bankruptcy. After multiple settlement agreements and pledges to fix the defect of tens of millions of vehicles worldwide, it’d be amazing if the manufacturer were able to easily return to ‘business as usual’.<\/p>\n

On 19th<\/sup> June 2017, the manufacturer filed for bankruptcy and announced they would be taken over by Key Safety Systems Inc. (a Chinese investor) for 175 billion yen (\u00a31.2 billion). The bankruptcy order listed the company’s liabilities as more than $10 billion (\u00a37.6 billion).<\/p>\n

There’s a worry that Takata may not be able to deliver all the fixes as money is wearing thin. According to NHTA’s statistics, as of 26th<\/sup> May 2017, only 38% of the 43 million airbags were recalled in the U.S. In Japan, they’ve made more progress, as 73% of the 19 million airbags have been recalled.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Takata airbag recall is one of the biggest automotive recalls in history. The company started producing airbag inflators in the late 1990s, and around the year 2000, Takata discovered some of their airbag inflators weren’t functioning properly, and even found some had erupted during tests. The first recorded incident reportedly happened in May 2004 … Continue reading Takata files for bankruptcy as a result of exploding airbag scandal<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":490,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[13,1],"tags":[18],"class_list":["post-892","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-automotive","category-latest","tag-takata"],"yoast_head":"\nTakata Files For Bankruptcy Over Exploding Airbag Scandal<\/title>\n<meta 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files for bankruptcy as it buckles under pressure of numerous lawsuits","author":"Admin","date":"8th December 2017","format":false,"excerpt":"The motor industry was shaken by revelations of Takata's dangerous airbags that have the potential to explode and shoot shards of metal into the cabin of a car. As one of the world's largest producers of airbags, its inflatable devices are used in vehicles made by Honda, Mazda, Toyota, Subaru\u2026","rel":"","context":"In "Automotive"","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":875,"url":"https:\/\/www.groupactionlawyers.co.uk\/blog\/exploding-takata-airbags-many-millions-involved-recalls","url_meta":{"origin":892,"position":1},"title":"Exploding Takata airbags: many millions involved in recalls","author":"Admin","date":"9th August 2017","format":false,"excerpt":"There have been multiple calls to get Takata inflators out of vehicles and off the roads for several years, and after a crash where a Takata airbag reportedly nearly caused a woman's death, these calls are getting louder. Karina Dorado's trachea was reportedly punctured by shrapnel from a Takata inflator.\u2026","rel":"","context":"In "Automotive"","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"exploding airbags","src":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":1019,"url":"https:\/\/www.groupactionlawyers.co.uk\/blog\/defective-takata-airbag-may-reportedly-involved-traffic-fatality","url_meta":{"origin":892,"position":2},"title":"Defective Takata airbag may reportedly be involved in traffic fatality","author":"Admin","date":"16th October 2017","format":false,"excerpt":"We've been covering the Takata airbag scandal for some time now, and news has emerged of another potential fatality that may be directly linked to the defective airbags. A woman reportedly died from injuries sustained in a car collision in July this year, which involved a Honda Accord 2002 said\u2026","rel":"","context":"In "Automotive"","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"exploding airbags","src":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":547,"url":"https:\/\/www.groupactionlawyers.co.uk\/blog\/nissan-potentially-deadly-airbag-recall-150000-vehicles-affected","url_meta":{"origin":892,"position":3},"title":"Nissan recalls over 150,000 vehicles over potentially deadly airbags.","author":"Admin","date":"6th March 2017","format":false,"excerpt":"Nissan has recalled a total of 152,554 vehicles after reports of defective airbag inflators causing injury and death. The airbag inflators may rupture: exploding and shooting metal fragments into the cabin of the car; potentially causing substantial harm. This defect is susceptible to rupturing for a number of reasons: Propellant\u2026","rel":"","context":"In "Automotive"","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"traffic","src":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2016\/09\/traffic.png?fit=725%2C250&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2016\/09\/traffic.png?fit=725%2C250&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2016\/09\/traffic.png?fit=725%2C250&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2016\/09\/traffic.png?fit=725%2C250&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":484,"url":"https:\/\/www.groupactionlawyers.co.uk\/blog\/exploding-airbags-case-nears-settlement-with-us-federal-prosecutors","url_meta":{"origin":892,"position":4},"title":"Company responsible for exploding airbags is close to settlement with federal prosecutors in the U.S.","author":"Admin","date":"18th January 2017","format":false,"excerpt":"Auto-parts maker Takata is reported to be nearing a settlement for supplying allegedly dangerous airbags that can explode and shoot shards of metal in to the vehicle cabin. It has been revealed that Takata had been making the potentially defective airbags since the early 2000s, and any attempt to unearth\u2026","rel":"","context":"In "Automotive"","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"exploding airbags","src":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/air-bags.png?fit=725%2C250&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":440,"url":"https:\/\/www.groupactionlawyers.co.uk\/blog\/takata-faulty-airbags-cost-1bn-us-settlement","url_meta":{"origin":892,"position":5},"title":"Takata’s faulty airbags looking to cost $1bn (\u00a3812m) in U.S. settlement","author":"Admin","date":"5th January 2017","format":false,"excerpt":"It hasn't been a good few years for the automotive industry. First we had the Volkswagen (VW) scandal, and now Takata Corporation's huge airbag disaster; which may cost the Japanese auto suppliers up to $1 billion (\u00a3812 million) in a U.S. criminal settlement. Takata has been manufacturing airbags for several\u2026","rel":"","context":"In "Automotive"","block_context":{"text":"Automotive","link":"https:\/\/www.groupactionlawyers.co.uk\/blog\/category\/automotive"},"img":{"alt_text":"us settlement","src":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/us-settlement.png?fit=725%2C250&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/us-settlement.png?fit=725%2C250&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/us-settlement.png?fit=725%2C250&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.groupactionlawyers.co.uk\/blog\/wp-content\/uploads\/2017\/01\/us-settlement.png?fit=725%2C250&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/posts\/892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=892"}],"version-history":[{"count":4,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/posts\/892\/revisions"}],"predecessor-version":[{"id":901,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/posts\/892\/revisions\/901"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/media\/490"}],"wp:attachment":[{"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.groupactionlawyers.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}