Takata Airbag Problem Engulfs Toyota

Takata’s defective airbags forced another automaker to recall additional vehicles in mid-October as Toyota announced it is recalling 247,000 vehicles with airbags that may rupture. The Japanese maker has already recalled more than 2.2 million vehicles for faulty Takata inflators.

This action follows a series of recalls by several automakers that used Takata’s airbags in their vehicles, including Chrysler, General Motors, Ford, Honda, BMW, and others. In all, more than 16.5 million vehicles have been recalled since 2008 due to the faulty airbags.

Toyota is recalling the 2002-05 Lexus SC, 2002-05 Toyota Sequoia, 2003-05 Toyota Tundra, and 2003-05 Corolla and Corolla Matrix.

Some of the problem appears to be related to vehicles in locales with high heat and high humidity. In this case, the vehicles subject to the latest action were sold or registered in south Florida and along the Gulf Coast, Puerto Rico, Hawaii, the U.S. Virgin Islands, and other U.S. territories.

In addition to vehicles produced and sold by Toyota, it includes the 2003-05 Pontiac Vibe assembled for General Motors Co. by Toyota at their previous joint operation in California.

Automakers have been recalling vehicles that use the Takata airbags throughout the year. The National Highway Traffic Safety Administration has been studying the issue at length and working with companies to get problem vehicles fixed.

More troubles ensue, in the form of two possible class action suits. A pair of New York law firms filed on October 27 what they hope will be approved as a class action lawsuit against the troubled Japanese supplier.

The complaint, filed in the U.S. District Court for the Central District of California, claims that Takata may have cut corners to build cheaper airbags, and that Honda may have bought its airbags from Takata to reduce manufacturing costs. The result, according to the complaint, is that instead of saving lives, defective Takata airbags in Honda automobiles are killing and maiming drivers and passengers involved in otherwise minor and survivable accidents.

Complicating matters, new reports suggest Takata first learned about potential airbag problems as early as 2001 and failed to take action, a breach that could create further legal issues – even as critics demand the current U.S. recall covering 7.8 million vehicles equipped with Takata airbags be greatly expanded.

The new lawsuit, which was filed in U.S. District Court in Florida, is the first attempt to gain class-action status. It also named Toyota, Honda, BMW, and Ford as defendants.

The Japanese auto supplier is also mired in a criminal price-fixing investigation by the Department of Justice.

Four Takata executives pleaded guilty to price-fixing charges brought by the Justice Department’s anti-trust division, which charged the company’s executives with colluding with other suppliers to rig bids for seat belts against Honda, Toyota, and Mazda.

In addition to the charges by the DOJ, the U.S. District Court in Eastern District of Michigan has levied fines against Takata totaling more than $71 million. All three Japanese carmakers also have been heavily impacted by the concerns over airbags supplied by Takata, which have exploded and in a number of cases injured motorists.

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