The regulators cited the chemical ammonium nitrate, used as a propellant, as a factor in explosive air-bag ruptures that have caused seven deaths and almost 100 injuries in the United States.
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Within the Consent Order, the USD$200 million fine will be comprised of two parts – USD$70 million that is payable in cash, plus an additional USD$130 million that would be required to be paid if Takata is unable to meet its obligations.
In response, Takata’s senior vice president for global quality assurance said it was studying the decision by Honda, which accounts for about 10 percent of the airbag giant’s global sales.
The Takata airbag crisis arose when reports of injuries emerged from normal airbag deployments, with the airbags themselves deploying in a much more severe manner than originally designed. The agency continues to investigate whether the company’s side air bag inflators also should be recalled. USA regulators said millions of cars equipped with potentially defective Takata air bags may not be repaired until the end of 2019 because not enough replacement parts are available.
On November 3, Honda Motor Company released a statement noting its discontinuation in using Takata airbags.
Perhaps most importantly, Takata has agreed to recall all airbag systems containing ammonium nitrate unless it can demonstrate to NHTSA that they’re unquestionably safe for consumers (which isn’t likely to happen).
To this end, the company agrees to phase out the manufacture and sale of non-desiccated Phase Stabilized Ammonium Nitrate (PSAN) Takata inflators by 2018, and will not be part of any new contracts to supply PSAN inflators, among other obligations the company has consented to.
In May, Takata agreed to recall its airbag inflators in what became the largest-ever recall in the U.S. The bags could send metal shards rocketing at high speed into vehicle passenger compartments, which were linked to six deaths. Furthermore, NHTSA says Takata intentionally gave the government incomplete and inaccurate data since at least 2009, all to keep from recalling the deadly airbags.
The Japanese carmaker Honda pledged Wednesday to find another supplier for its air bag inflators, saying it was “deeply troubled” to learn that Takata had falsified test data for a few of its devices.
Fines from the US safety regulator could climb as high as $200 million.
Takata also faces an investigation by the U.S. Justice Department, as well as lawsuits from victims and their families.
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Besides the fine, a separate computer screen will be placed by the NHTSA at Takata for another five years.
