Takata pleads guilty to airbag cover-up

Takata has agreed to a $US1 billion ($A1.3 billion) settlement after concealing a deadly defect in millions of its airbags.

The Japanese automotive parts manufacturer pleaded guilty to fraud in the US federal court in Detroit this week, admitting to hiding evidence that its air bag inflators could explode with too much force, firing shrapnel into vehicle occupants.

According to Associated Press, chief financial officer Yoichiro Nomura, entered a guilty plea on the company’s behalf. He also agreed that Takata would be sold or merged with another company.

The fault centred on Takata’s use of ammonium nitrate to set off the air bag’s inflators.

Ordinarily, ammonium nitrate creates a small explosion that inflates air bags in a crash. But when exposed to high temperatures or humidity, the compound deteriorates and can burn too fast when ignited, causing the metal canister housing the compound to blow apart as a result.

Takata provided the air bags to 19 auto makers including Toyota, Honda, Ford, Nissan, BMW and Volkswagen. The inflators have been attributed to at least 16 deaths and more than 180 injuries globally, according to reports. No deaths have been cited in Australia.

The ensuing crackdown sparked the single biggest automotive recall in history, encompassing nearly 100 million vehicles globally. That figure includes nearly two million Australian vehicles still subject to ongoing recall campaigns.

As part of its guilty plea, Takata agreed to pay $A1.1 billion in compensation to car companies to which it supplied air bag inflators, $A162 million to victims and $A32 million in criminal fines.

Separately, three former Takata employees are charged with falsifying test reports. They remain in Japan.

According to Associated Press, the court heard that plaintiffs in dozens of lawsuits have claimed that Honda, Toyota, Nissan, Ford and BMW had independent knowledge that Takata’s airbags were unsafe, but continued to use them for years to save money. The auto companies reportedly asserted they were deceived by Takata and should not be held liable.

During court proceedings, Takata said it would need to find a suitable buyer in order to fund the settlement.

It is worth noting that Takata’s penalty is small compared with the one imposed on Volkswagen over its diesel emissions scandal. The German automaker has been instructed to buy back cars and pay up to $A27 billion in penalties and compensation in the US.

The list of Australian-delivered vehicles requiring at least one airbag replaced is now as follows:
BMW 3 Series 1998-2005
BMW 5 Series 2002-2005
BMW X5 2002-2005
Chrysler 300C 2005-2012
Chrysler Grand Voyager 2008-2010
Dodge Journey 2009-2010
Dodge RAM 2004-2010
Ferrari 458 Italia
Ferrari 458 Spider
Ferrari 458 Speciale/Speciale A
Ferrari California T
Ferrari FF
Ferrari F12 Berlinetta
Honda Accord 2001-2006
Honda Accord 2012
Honda Accord Euro 2004-2007
Honda Accord Euro 2012
Honda City 2009-2012
Honda Civic 2000
Honda Civic 2004-2011
Honda CR-V 2002-2008
Honda CR-V 2007-2011
Honda Insight 2010-12
Honda Jazz 2004-2009
Honda Jazz 2006-2012
Honda Jazz 2012-2014
Honda Jazz Hybrid 2012
Honda Legend 2007-2012
Honda MDX 2003-2006
Jeep Cherokee manual 2006
Jeep Wrangler manual 2006
Jeep Wrangler 2007-2012
Lexus IS 2005-11
Lexus IS 2012
Lexus LFA
Lexus SC430 2003-2007
Mazda2 2007-2014
Mazda6 2002-2007
Mazda B2500/2600 2002-2007
Mazda B Series 2006
Mazda BT-50 2006-2011
Mazda E-Series 2002-2007
Mazda T-Series 2002-2007
Mazda RX-8 2002-2007
Mazda RX-8 2003-2012
Mercedes-Benz SL 2014
Mercedes-Benz SLK 2014
Mitsubishi CH Lancer 2003-2008
Mitsubishi CY/CZ Lancer EVO 2003-2008
Mitsubishi ML and MN Triton 2007-2014
Nissan Maxima 2001-2007
Nissan Maxima (J31) 2007-2008
Nissan Micra 2010-2011
Nissan Navara 2001-2007
Nissan Navara (D22) 2007-2012
Nissan Navara (D40) 2008-2014
Nissan Patrol 2001-2007
Nissan Patrol (Y61) 2007-2012
Nissan Pulsar 2001-2007
Nissan Tiida (C11) 2006-2012
Nissan X-TRAIL 2001-2007
Nissan X-TRAIL (T30) 2007-2008
Subaru Impreza 2004-2007
Subaru Impreza 2008-2009
Subaru Forester 2009
Subaru Liberty, Outback, Tribeca – 2004-2009
Toyota Avensis 2003-2009
Toyota Corolla 2003-2009
Toyota Echo 2003-2005
Toyota RAV4 2003-2005
Toyota Yaris 2005-2011