The Japanese maker Takata was fined for lapses in its recall of 19 million vehicles containing faulty air bag inflators.
On Tuesday the US Department of Transportation announced Takata will be fined $200 million. The Japanese air bag maker was fined for discrepancy in the faulty air bag inflator’s recall. Takata it seems failed to properly recall the 19 million vehicles affected in the US due to the airbag inflators.
The National Highway Traffic Safety Administration stated Takata failed to issue a timely recall even after Takata knew about the faulty inflators. Anthony Foxx is the Transportation Secretary of the NHTSA.
According to Foxx Takata has been building and selling defective products for years. Takata refused to acknowledge the defects for years. Takata even failed to provide proper and full information to the NHTSA and the public.
Takata will have to pay $70 million in cash to the Department of Transportation. An additional $130 million will be further fined if the terms of the recall are violated again. Takata is facing the penalty due to violating the terms of recall with the NHTSA.
The agreement also states an independent monitor will keep on auditing Takata for the coming five years. In the future all of Takata’s inflators produced will be strictly tested.
Takata airbag inflators have caused a total of 8 deaths in Honda vehicles and several injuries. If the NHTSA impose the $200 million fine it will be the biggest civil penalty in the organization's history.
Shigehisa Takada is the CEO of Takata suppliers. According to Takada the settlement is an important step forward for Takata. Since the settlement will allow them to rebuild the trust of automakers, regulators and customers.
"This settlement is an important step forward for Takata that will enable us to focus on rebuilding the trust of automakers, regulators and the driving public," said Takada in a statement.
Don't Miss: Sam's Club Black Friday 2016 Details
"For years, Takata has built and sold defective products, refused to acknowledge the defect, and failed to provide full information to NHTSA, its customers, or the public," said Transportation Secretary Anthony Foxx in a statement.