Jan 3, 2019

Takata Pleads Guilty in Cover-UP of Bad Airbags

It appears the Airbag maker pled guilty in this case to cover-up related to deaths. A court fined the company $1 billion in this case. Takata, a Japanese auto supplier, did enter a guilty plea. The plea, in this case, made Monday in Detroit federal court. So this fulfilled the requirements of a deal with the U.S. Justice Department that included a guilty plea and a victim's compensation fund. It's a fund for victims and families of the airbags.

It's a fund for victims and relatives of the airbag defect. In this case, it stems from the company covering up a flaw in airbags. The airbags resulted in 16 deaths.

[caption id="attachment_23007" align="alignleft" width="327"] Airbags are crucial in a crash[/caption]

Settlement and Agreement.

The auto supplier agreement did include a 1 billion dollar fund. Though, they had to open a compensation fund. And the fund needed to be $125 million set aside for victims and families.

It's known at least 16 people died because of the malfunctioning airbags. Of particular concern, another one hundred people suffered injuries due to the failed airbags. Further, three Takata executives did get indicted by the government. But in this case, the charges against the executives were for creating false test reports. The executives did it to hide the airbag defect. And if the airbags had real trials, numerous deaths and injury remained avoidable. The true test results could have saved victims from untold injuries and death.

The airbags, in this case, did get installed in dozens of automobile models. It, in fact, led to a U.S. recall for over 42 million vehicles. The National Highway Traffic Safety Administration focused on the oldest cars first. Older models recalled by NHTSA first because of the research.

In this case, it, shows the airbags become unstable. In this instance, due to the chemicals used in the airbags. Because of a shortage of replacement parts, the auto recall comes in stages. Older model cars have a high risk, of course. The parts, of course, need replacement to avoid the dangerous risk in this case.

Expanded Recall.

In the first place, Takata resisted expanding the recall. Though, they did so only due to pressure from the NHTSA. Also, the auto supplier followed suit, along with General Motors and Volkswagen.  They hired lawyer Kenneth Feinberg. And he is the attorney appointed to oversee the $125 million compensation fund.

In fact, the lawyer has experience creating similar funds too. He oversaw funds for those impacted by 9/11 and the BP oil spill. The oil spill, of course, did happen in the Gulf of Mexico in this case. Volkswagen, though, of course, did use the lawyer to run a fund. Because of problems in fact with automakers diesel engines.

Takata will compensate affected automakers $850 billion. In this case, automakers remain severely impacted because of the airbag scandal. It's believed this amount will cover a mere fraction of the loss. The loss suffered by the automakers or, in this case, will suffer. Because of the false airbag tests and, of course, the recall too.

The airbags research showed airbags became unstable. In this case, the airbags proved unstable due to certain risks. The airbags have a higher risk in areas with high humidity. The problem's the ingredient ammonium nitrate that became explosive. It's used to inflate the airbags and also the cause of the instability.

Risk of Face and Eye Injuries?

Takata airbags can inflate in an inappropriate manner. Airbags that inflate improperly can release shrapnel. The explosion sent shrapnel of course into the passenger compartment too. This flying metal and debris have resulted in over one hundred injured and at least 16 killed.