Daily Management Review

12 million U.S. vehicles Recalled by Automakers over Takata Air Bags


05/27/2016




12 million U.S. vehicles Recalled by Automakers over Takata Air Bags
Expanding the largest-ever auto safety push, documents posted by U.S. regulators showed that more than 12 million U.S. vehicles for defective Takata air bags were being recalled by eight automakers.
 
The announcement was made on Friday.
 
According to the U.S. regulators documents, while Fiat Chrysler Automobiles NV is recalling 4.3 million, Honda Motor Co is recalling 4.5 million U.S. vehicles. However while prior recalls were for driver-side inflators, the new recall is focused on passenger-side air bag inflators.
 
The Friday notice is largely included in the total of about 14 million inflators that were declared defective by the Japanese firm Takata in the first phase of its latest recall.
 
In a move that will involve recalls by 17 automakers, Japan's Takata Corp this month agreed to declare as many as 40 million additional air bag inflators defective by 2019.
 
Takata inflators can spray metal shrapnel into vehicle passenger compartments as they have been found to explode with too much force.
 
13 deaths and more than 100 injuries worldwide have been linked to the defective air bag inflators. The vehicles being recalled include pickups, SUVs and cars and were built between 2002 and 2011.
 
On the other hand news agency Reuters reported that Takata is in talks with a number of potential investors including private equity firm KKR & Co for potential bailout packages.
 
There are no reports of any ruptures involving the vehicles in the latest recall, says Takata and the automakers. The risk of exposure to high humidity and the car’s age were the priority factors in the latest recalls. Hence this can result in some owners not getting replacement inflators for several years.
 
About 50 million vehicles with Takata inflators had been earlier recalled by automakers worldwide.
 
Putting the total number of recalled vehicles close to 70 million, including some recalled multiple times, on Friday, Japan's transport ministry said that automakers will recall approximately 7 million vehicles there.
 
More automakers are expected to issue notices in the coming days.
 
About 28.8 million inflators affecting 24 million U.S. vehicles had been recalled by 14 automakers led by Honda. At least 2.3 million of the 12 million vehicles in the latest recall were subject to previous notices related to driver air bags.
 
While Subaru is recalling nearly 400,000 vehicles in the United States, Toyota Motor Corp has told regulators it is recalling 1.65 million vehicles. The recalled vehicles include some discontinued Saab and Pontiac vehicles assembled for General Motors Co, the two automakers said.
 
933,000 vehicles sold in Canada, Mexico and outside North America are to be recalled by Fiat Chrysler for Takata inflators, the company said on Friday. The second phase of the Takata expansion would include 660,000 U.S. vehicles, said the company to the U.S. National Highway Traffic Safety Administration.
 
An additional 7 million vehicles with Takata air bags would be recalled, said regulators in Japan. While Nissan Motor Co is recalling 400,000 vehicles, Mazda Motor Corp is recalling about 730,000 U.S. vehicles. Ferrari NV is calling back 2,800 U.S. sports cars and Mitsubishi Motors Corp is recalling about 38,000 2006-2007 Lancer vehicles.
 
(Source:www.reuters.com) 






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