Feds Fine Takata $70 Million for Airbag Recall

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iStock/Thinkstock(NEW YORK) — Federal regulators have fined Takata $70 million for the company’s airbag recall.

The announcement was made by the Department of Transportation on Tuesday and the Japanese auto parts supplier could face an additional $130 million in penalties if Takata doesn’t follow the DOT’s strict rules.

“For years, Takata has built and sold defective products, refused to acknowledge the defect,” Transportation Secretary Anthony Foxx said on Tuesday when announcing the penalty. “This has been a mess.”

Foxx said drivers have had to worry about their airbags “for too many years now.”

“They’ve had to worry about whether their car’s airbags might harm them instead of protect them in a crash,” said Foxx.

The recall involves more than 30 million vehicles, with most affected models made from 2002 to 2008. The airbags reportedly could deploy explosively.

The airbag maker must now phase out ammonium nitrate inflator production and recall the inflators that were already in vehicles, according to the National Highway Traffic Safety Administration. Investigators have said that the exploding airbags could have been caused by the airbags inflating. The airbags are inflated when a certain chemical explodes, but according to investigators if the airbag is exposed to airborne moisture for a period of time, it could cause the propellant to burn too quickly and blow apart a metal canister that would otherwise contain the explosion.

The NHTSA is also expected to appoint an independent monitor to ensure Takata follows the settlement and takes the actions needed to fix the safety problems. The company also faces numerous lawsuits over its problematic air bags.

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