Japanese Auto Parts Maker, Takata Fined $200 Million over Faulty Airbags

Industry Week | Technology

Japanese Auto parts manufacturer, Takata Corporation, was Tuesday fine a penalty fee for providing insufficient and wrong information about it exploding airbags, Industry Week reports.

US auto safety regulators announced the record $200 million (£130 million) for providing inadequate and inaccurate information about the airbags installed in millions of cars.

Takata was accused of evading reporting requirements, including making "the conscious decision" to not report two incidents to the regulator. 8 deaths have now been reported globally linked to the faulty airbags.

But Takata would be required to pay only $70 million (£45.4 million) initially.  The report said if the company re-offends by violating NHTSA orders, additional amounts would be levied.

Anthony Foxx, US Secretary of Transportation said "For years, Takata has built and sold defective inflators. It refused to acknowledge that they were defective" adding that "Delay, misdirection, and refusal to acknowledge the truth allowed a serious problem to become a massive crisis."

Twelve automakers that used the dangerous Takata airbags in their cars are being urged to accelerate recalls to replace he equipment and set a priority for those cars at the highest risk.

Mark Rosekind, NHTSA administrator said "These inflators still pose an unacceptable risk to the public," adding "No one deserves to have an exploding air bag installed in their vehicle."

Takata's European Head Quarters is in Germany, where it has 9 production facilities. It's share price deeped on the news, losing 13.40% of its value on the Tokyo Stock Exchange (TSE).